Old Mutual to set up a bank
SOUTH African-based, Old Mutual has been granted approval to establish a bank, a development described as “a material catalyst in our strategic delivery journey.”
The approval, in terms of Section 17 of the Banks Act, allows Old Mutual to proceed to the next critical stage in the process of establishing a bank.
In a statement on Friday, Group Chief Executive Officer, Iain Williamson said “Old Mutual is pleased to announce that, following a stringent regulatory review of its application in terms of Section 16 of the Banks Act 94 of 1990, as amended (“Banks Act”), the Prudential Authority has granted the Group approval to establish a bank subject to certain licence conditions.
“This approval, in terms of Section 17 of the Banks Act, allows Old Mutual to proceed to the next critical stage in the process of establishing a bank.”
The Group will now formally transition from ‘bank build mode’ and enter into a strict and rigorous industry testing phase with selected bank partners.
It added that upon a successful error-free testing, the new OM Bank will fully integrate into the National Payments System.
“The approval to establish a Bank is a material catalyst in our strategic delivery journey. It accelerates the fulfilment of our strategic choice to build an Integrated Financial Services business and further strengthens our victory condition to be our customers’ first choice to sustain, grow and protect their prosperity”
Old Mutual’s bank is set to be launched before the end of the year following a bank build of around two years.-chronicle
