Old Mutual appoints CEO to launch new bank

Clarence Nethengwe has been appointed as the CEO-designate for Old Mutual’s new bank.

The group said that Nethengwe will take up the role on 1 November, subject to regulatory approval.

“Old Mutual Group is pleased to announce the proposed appointment of Clarence Nethengwe as CEO-designate of Old Mutual Bank, effective 1 November, subject to regulatory approval,” it said.

Nethengwe is a long-standing executive of Old Mutual, and the group believes he is suitably qualified to lead the bank as it prepares to go live.

“He has been a passionate advocate of the Group’s Integrated Financial Services (IFS) strategy and recognised early on the pivotal role banking would play as a growth opportunity for Old Mutual,” said the group.

“He was instrumental in developing the initial business case and appointing the first key executives for the Bank. The Bank is a crucial part of Old Mutual’s IFS strategy, and Clarence is well-positioned, as the MD of Mass & Foundation, to ensure seamless alignment across the group as we prepare to launch.”

Thus, Retail Mass’s leadership will soon be transitioned to a new leader, which will allow Nethengwe to focus on his broader responsibilities.

The group also announced the resignations of Rolf Eichweber, CEO of OM Bank-Build, and Royden Volans, COO of OM Bank-Build, effective 31 July 2024.

Both Eichweber and Volans will remain in their positions until 31 October 2024 to ensure a smooth leadership transition.

“The transition from a ‘bank-build’ phase to a ‘bank run’ phase marks an exciting new chapter in our journey,” said Iain Williamson, CEO of Old Mutual Group.

“While we greatly value the immense contributions of Rolf and Royden, we are confident that we have the right skills and leadership in place to take the bank forward and ensure its success.”

Nethengwe has been with Old Mutual for 15 years.

His experience includes overseeing Old Mutual Finance, its unsecured lending business, with a book of R16 billion.

This also houses Old Mutual’s transactional banking capability, which services over 1 million customers.

Moreover, he oversees the over R5 billion housing loan book in Housing Investment Partners, a subsidiary of Old Mutual.

The group added that Nethengwe has a strong understanding of retail credit and the associated business processes and challenges.

He also has experience overseeing the launch and build-out of the Old Mutual money account and chairs the Board of Old Mutual Transaction Services.

The group said that core focus over the next period is ensuring the OM Bank executive committee has a complement of core skills. The bank will ramp up more hires as its next growth phase takes off.

The group received approval from the Prudential Authority to establish OM bank in April, with the bank expected to launch by year-end.

“Old Mutual remains committed to the continued success of Old Mutual Bank and will continue to invest in both capital and talent to build on the strong foundation laid by Rolf and Royden,” said Williamson.

“On behalf of Old Mutual, we extend our gratitude to Rolf and Royden for their leadership, vision, and dedication to the bank build. Their efforts have laid the groundwork for what will be a dynamic and successful bank, and their contributions will be felt long after their departure.”

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