Old Mutual Expands Its Services Throughout Africa

This article is presented by Brand South Africa

Q: Old Mutual is enhancing and diversifying its offerings in insurance, asset management, and (digital) banking. Can you share some insights into the Group’s activities over the past year and the opportunities you foresee?

A: A significant milestone we achieved this year was securing Section 17 approval in April 2024, a key step for the launch of OM Bank. We have successfully completed industry testing and integrated the bank into the National Payment System, with a groundbreaking simultaneous testing process involving four payment clearing houses—an industry-first initiative. With these technical capabilities validated, we are now focusing on fulfilling the remaining regulatory requirements and establishing governance structures in anticipation of the bank’s official launch by the end of 2025. This bank initiative is a vital component of our integrated financial services strategy, enabling us to better serve our customers’ diverse financial needs.

Q: What challenges and headwinds have you encountered?

A: One of our most significant challenges has been the delay in acquiring regulatory approval, which has extended the timeline for our bank’s launch. Nevertheless, we are dedicated to addressing the outstanding requirements and are making steady progress towards a public unveiling by the end of 2025.

Q: The asset management segment is particularly interesting, especially as you manage climate-related funds on the continent and partner with multilateral institutions. How is the asset management business performing, and what changes do you anticipate in the coming years?

A: The asset management sector is intricately linked to global investment markets, which have been gradually rebounding over the last 12 to 18 months, as central banks have reduced interest rates in response to easing inflation, especially in developed economies.

As one of the largest asset management firms in Africa, Old Mutual is dedicated to promoting sustainable outcomes through our investment strategies. Our commitment is demonstrated by our involvement in the Net Zero Asset Managers Initiative and the Net Zero Asset Owners Alliance. Given South Africa’s carbon-intensive listed market, facilitating a just transition towards decarbonization is core to our responsible investment approach.

Q: With your keen focus on technology and innovation, how do you envision these developments reshaping your industry, and where do you see the greatest impact?

A: Financial services firms must stay alert to upcoming trends while also adopting and experimenting with new technologies. Now is the time to think innovatively and implement changes that will have the most profound impact, benefiting a wide range of stakeholders. While the expanse of innovation can be overwhelming, this is an exhilarating moment to lead transformation, especially in Africa, the world’s largest trading bloc.

We are enthusiastic about our role in future-proofing Africa through “tech for good.” By collaborating with pioneering firms that provide concrete solutions, we aim to tackle urgent issues like healthcare, education, and employment creation. Our partnerships with key technology players are aimed at making substantial impacts on the lives and livelihoods of African citizens.

Exponential thinking is essential—businesses and customers who fail to adapt to new technologies risk being left behind. As a forward-thinking financial partner, we utilize technology to enhance financial literacy and wellness across the continent.

Q: Your African operations beyond South Africa have shown strong performance and promising growth in recent years. What key areas of growth and opportunities do you foresee?

A: Old Mutual’s solid presence in 11 countries across West, East, and Southern Africa reflects our commitment to fostering financial inclusion and providing tailored solutions to meet local needs. Strategic partnerships, such as our bancassurance collaborations with KCB Group in Kenya and Ecobank in Ghana, have improved access to financial products for underserved communities, benefiting over 30,000 customers in Kenya alone.

Our innovative digital offerings, such as the Phuka mobile savings wallet in Malawi and the O’mari mobile wallet in Zimbabwe, have also made a substantial impact. These initiatives promote a saving culture and provide practical financial tools for everyday usage, collectively attracting over 1.5 million customers during their first year.

These efforts illustrate Old Mutual’s commitment to delivering accessible, innovative financial solutions tailored to the unique needs of African markets. We will continue to explore opportunities to expand our reach and make significant contributions to the continent’s growth and prosperity.

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