{"id":34568,"date":"2022-11-24T17:55:17","date_gmt":"2022-11-24T17:55:17","guid":{"rendered":"https:\/\/www.africa-press.net\/namibia\/all-news\/old-mutual-considers-launching-a-bank"},"modified":"2022-11-24T18:05:56","modified_gmt":"2022-11-24T18:05:56","slug":"old-mutual-considers-launching-a-bank","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/namibia\/all-news\/old-mutual-considers-launching-a-bank","title":{"rendered":"Old Mutual considers launching a bank"},"content":{"rendered":"

Africa-Press – Namibia. <\/strong><\/span>OLD Mutual, the life assurance and financial services group, plans to launch its own banking business in the second half of 2024, after gaining Section 13 approval from the Prudential Authority to proceed with the application for a banking licence.<\/p>\n

\u201cWe are working on our application under Section 16 of the Banks Act for the registration of the bank,\u201d the group’s directors said in a trading update on Tuesday.<\/p>\n

Old Mutual’s board has approved capital expenditure of N$1,75 billion to complete the transactional capability for the bank.<\/p>\n

\u201cIn line with the business case, we have incurred costs of N$830 million for the current period, and approximately 10% of these costs were capitalised. The entity is expected to break even three years after the launch.<\/p>\n

\u201cAs the capability matured post break-even, the return was expected to be significantly above the target return of 4% in excess of the cost of equity,\u201d the directors said.<\/p>\n

They said the establishment of an entity in the group with a banking licence \u201cis a natural progression of our core strategy, helping us to sustain our customers’ prosperity through an enhanced transactional banking capability\u201d.<\/p>\n

The group’s existing lending and transactional solutions in South Africa consist of the Money Account product and an unsecured lending product.<\/p>\n

\u201cThese solutions are offered mainly to our mass and foundation cluster customer base and the unsecured lending solution is already a strong contributor to group profitability,\u201d the group said.<\/p>\n

Currently, the transactional solution was delivered through a commercial arrangement with a third-party bank.<\/p>\n

\u201cWhile this commercial arrangement has allowed us to gain experience in transactional banking services, a divergence of aspiration requires us to reassess our future arrangement to deliver on our customer needs,\u201d the directors said.<\/p>\n

\u201cThe establishment of a bank… will allow us to hold the primary relationship with our customers, driving greater regular interaction with them and enhancing the cross-sell opportunities. It will also enable the group to accept retail deposits, thereby providing a cheaper source of funding.\u201d<\/p>\n

The aim was to deliver flexible and scalable solutions, with a club-based technology stack, to its customers using the latest technology that allowed enhanced servicing and personalisation. \u2013 IoL News<\/p>\n

\u201cWe are working on our application under Section 16 of the Banks Act for the registration of the bank,\u201d the group’s directors said in a trading update on Tuesday.<\/p>\n

Old Mutual’s board has approved capital expenditure of N$1,75 billion to complete the transactional capability for the bank.<\/p>\n

\u201cIn line with the business case, we have incurred costs of N$830 million for the current period, and approximately 10% of these costs were capitalised. The entity is expected to break even three years after the launch.<\/p>\n

\u201cAs the capability matured post break-even, the return was expected to be significantly above the target return of 4% in excess of the cost of equity,\u201d the directors said.<\/p>\n

They said the establishment of an entity in the group with a banking licence \u201cis a natural progression of our core strategy, helping us to sustain our customers’ prosperity through an enhanced transactional banking capability\u201d.<\/p>\n

The group’s existing lending and transactional solutions in South Africa consist of the Money Account product and an unsecured lending product.<\/p>\n

\u201cThese solutions are offered mainly to our mass and foundation cluster customer base and the unsecured lending solution is already a strong contributor to group profitability,\u201d the group said.<\/p>\n

Currently, the transactional solution was delivered through a commercial arrangement with a third-party bank.<\/p>\n

\u201cWhile this commercial arrangement has allowed us to gain experience in transactional banking services, a divergence of aspiration requires us to reassess our future arrangement to deliver on our customer needs,\u201d the directors said.<\/p>\n

\u201cThe establishment of a bank… will allow us to hold the primary relationship with our customers, driving greater regular interaction with them and enhancing the cross-sell opportunities. It will also enable the group to accept retail deposits, thereby providing a cheaper source of funding.\u201d<\/p>\n

The aim was to deliver flexible and scalable solutions, with a club-based technology stack, to its customers using the latest technology that allowed enhanced servicing and personalisation.<\/p>\n

For More News And Analysis About Namibia<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Namibia. OLD Mutual, the life assurance and financial services group, plans to launch its own banking business in the second half of 2024, after gaining Section 13 approval from the Prudential Authority to proceed with the application for a banking licence. \u201cWe are working on our application under Section 16 of the Banks […]<\/p>\n","protected":false},"author":84,"featured_media":34562,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[234,236,233],"class_list":["post-34568","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-namibia","tag-namibia"],"yoast_head":"\nOld Mutual considers launching a bank - Namibia<\/title>\n<meta name=\"description\" content=\"OLD Mutual, the life assurance and financial services group, plans to launch its own banking business in the second half ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/namibia\/all-news\/old-mutual-considers-launching-a-bank\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Old Mutual considers launching a bank\" \/>\n<meta property=\"og:description\" content=\"OLD Mutual, the life assurance and financial services group, plans to launch its own banking business in the second half ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/namibia\/all-news\/old-mutual-considers-launching-a-bank\" \/>\n<meta property=\"og:site_name\" content=\"Namibia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-11-24T17:55:17+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-11-24T18:05:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2022\/11\/postQueueImg_1669299931.39.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"750\" \/>\n\t<meta property=\"og:image:height\" content=\"450\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/old-mutual-considers-launching-a-bank#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/old-mutual-considers-launching-a-bank\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Old Mutual considers launching a bank\",\"datePublished\":\"2022-11-24T17:55:17+00:00\",\"dateModified\":\"2022-11-24T18:05:56+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/old-mutual-considers-launching-a-bank\"},\"wordCount\":692,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/old-mutual-considers-launching-a-bank#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2022\/11\/postQueueImg_1669299931.39.jpg\",\"keywords\":[\"africa press\",\"Africa Press-Namibia\",\"namibia\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/namibia\/all-news\/old-mutual-considers-launching-a-bank#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/old-mutual-considers-launching-a-bank\",\"url\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/old-mutual-considers-launching-a-bank\",\"name\":\"Old Mutual considers launching a bank - 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