Old Mutual is gearing up to disrupt the South African banking landscape with the scheduled launch of OM Bank in the first quarter of 2025.

Following regulatory approval in April 2024 and the successful completion of industry testing and National Payments System integration ahead of schedule, the digital bank is on track to make a significant impact.

Powered by 10x Banking’s cloud technology, OM Bank will target the upper mass market and lower affluent segments, positioning itself as a direct competitor to the market leader, Capitec Bank.

Old Mutual aims to leverage its existing customer base by converting money account holders to full-fledged OM Bank customers, aiming for full-scale operations by the end of 2025. This ambitious goal builds upon a strong foundation, with Old Mutual reporting a 37% increase in new business value in 2023.

OM Bank promises personalised services and competitive rates through retail deposits, catering to the evolving needs of its target market.

However, the competitive landscape is fierce. Capitec Bank‘s CEO, Gerrie Fourie, has openly acknowledged that tech giants like Apple and Meta present a more significant threat than traditional banking competitors.

“Old Mutual has been a bank for quite a while. They rented a bank license. So, the offer has been exactly the same—they’ve been offering banking services,” said Fourie. “They are now just getting their own banking license and their own banking system.”

READ ALSO:

South Africa Makes EVs Affordable with This New Legislative Move

Old Mutual’s entry into the digital banking market marks a calculated challenge to Capitec’s dominance in the mass market sector. With over a million customers and the backing of cutting-edge cloud technology, Old Mutual is well-positioned to provide individualised and affordable banking solutions.

This approach positions OM Bank not only against Capitec but also against a growing number of fintech platforms and digital wallets rapidly gaining traction in South Africa.

The success of OM Bank will depend on its ability to effectively integrate its banking services with Old Mutual’s broader range of financial products. Differentiating its offerings and effectively addressing evolving customer expectations will be crucial.

Om Bank and Capitec: A Spotlight on Digital Banking Solutions

Om Bank Kenya is making waves in the financial sector with its innovative services. Customers can access their accounts easily through the Om Bank login feature, available both on the Om Bank app and the Om Bank online banking platform.

Meanwhile, Capitec continues to dominate the market with its comprehensive digital offerings. From the Capitec app and Capitec app download to the seamless Capitec login and Capitec app login, the bank ensures user convenience.

READ ALSO:

Sanari Capital Set to Drive Mid-Market Expansion with $80M Fund

With options like Capitec cellphone banking and the ability to download Capitec app apk, customers can manage their finances effortlessly. Additionally, the Capitec head office remains a hub for strategic operations, supporting both retail and Capitec business customers.

Looking Ahead

The key question remains: Will OM Bank’s integration into Old Mutual’s broader financial ecosystem provide a competitive edge? Or will standalone fintech disruptors ultimately outmanoeuvre traditional institutions in delivering cutting-edge banking solutions?

As the digital banking landscape becomes increasingly crowded with both established financial institutions and new entrants vying for market share, the answer will determine the future of banking in South Africa.