Chamwe Kaira
The recently launched OM Bank, established in South Africa by the Old Mutual Group, has no immediate plans to expand into Namibia.
Nawhal Foster, an official at OM Bank, told Observer Money that the new bank’s focus is on South Africa.
“At this stage, OM Bank is focused exclusively on establishing and deepening its presence within South Africa. We are not planning to launch in markets outside of South Africa at this time,” Foster said.
The company said it has met the remaining section 17 conditions and received regulatory approval for the appointment of Clarence Nethengwe as chief executive officer.
OM Bank is leveraging Old Mutual’s existing banking capabilities, which include N$1.5 billion in deposits, N$15.5 billion in lending operations, a 346-branch network, and a FAIS-accredited in-branch advisor force.
Old Mutual said this will allow the bank to grow relationships with mass-market customers and attract new ones through a competitive banking proposition.
Old Mutual invested N$3 billion over three years to set up the bank before securing its licence in 2024.
OM Bank is a digital-first offering aimed at the mass market. The company has started transitioning existing Money Account clients to the new digital platform.
Customers have been encouraged to download the OM Bank app and transfer their funds from the legacy Money Account system.
Money market accounts will remain active until the end of 2026, when all transactions on them will be disabled.
In its integrated report for the year ending 31 December 2024, Old Mutual said Life Annual Premium Equivalent sales rose 17% to just over N$1 billion.
This growth was supported by strong retail sales in Namibia and new corporate sales in Malawi. The company said the value of new business was lower than in the prior year due to changes in assumptions about expenses.
These effects were partly offset by a positive product mix in Malawi and higher volumes sold in Namibia. Gross flows grew by 47% to N$23 billion.
