Old Mutual has received approval from the Prudential Authority to establish a bank in South Africa, which is expected to launch by year-end.<\/p>\n\n\n\n
Old Mutual said that it’s 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 (\u201cBanks Act\u201d), the Prudential Authority has granted the group approval to establish a bank subject to certain licence conditions.<\/p>\n\n\n\n
“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 said.<\/p>\n\n\n\n
Old Mutual noted it would now formally transition from \u2018bank build mode\u2019 and enter into a strict and rigorous industry testing phase with selected bank partners. <\/p>\n\n\n\n
“Upon successful error-free testing, the new OM Bank will fully integrate into the National Payments System,” it added. <\/p>\n\n\n\n
In its financial results for the year ended 31 December 2023 (FY2023), the group said that its bank build remains on track to be launched before the end of 2024, which is still the case. <\/p>\n\n\n\n
The next step for Old Mutual is the section 17 submission, which allows them to notify the industry via the Payments Association of South Africa that they intend to test the National Payments system in the latter half of 2024.<\/p>\n\n\n\n