Sanlam plans to offer banking services to its South African clients from next year as it seeks to grow revenue and gain a foothold in a thriving credit market.\u00a0<\/p>\n\n\n\n
Africa\u2019s largest insurer plans to leverage an agreement it entered into with TymeBank, the digital lender backed by billionaire Patrice Motsepe, to create a joint venture focused on unsecured personal loans bundled with credit life cover.<\/p>\n\n\n\n
\u201cWe think that will be very significant for us because we\u2019ve got millions of customers, we pay a lot of claims every year and we collect premiums, so we think there\u2019s a huge opportunity to move our clients,\u201d onto a new banking platform, Sanlam Chief Executive Officer Paul Hanratty said in an interview Thursday.<\/p>\n\n\n\n
\u201cWe are hoping to test with family and friends later this year and then by the middle of 2026, we should be in the market.\u201d<\/p>\n\n\n\n
Sanlam shares fell 3.5% in Johannesburg on Thursday, the most in almost two months.<\/p>\n\n\n\n
TymeBank intends to acquire half of Sanlam\u2019s retail-credit loan book and the two firms will set up a new operating company that will offer credit. <\/p>\n\n\n\n
The establishment of the venture comes on the back of rival Old Mutual Ltd. starting OM Bank\u00a0this year<\/a>.<\/p>\n\n\n\n The move will \u201cenable us to engage more with our clients, be closer to our clients, and it also will become the mechanism for our rewards program for all payments to customers,\u201d Hanratty said.<\/p>\n\n\n\n He spoke after the insurer posted record first-half profit, paced by a recovery in its African operations and surging growth in India.<\/p>\n\n\n\n Net income climbed 7% to R11.6 billion in the six months through June, the insurer said in a statement on Thursday. Net revenue from financial services climbed 14% to R8.1 billion.\u00a0<\/p>\n\n\n\n \u201cWe\u2019ve had an excellent six months,\u201d Hanratty said. \u201cIn total, sales have been fantastic. We are very, very happy.\u201d<\/p>\n\n\n\n