Does South Africa have too many banks?
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GUEST – David Shapiro, chief investment strategist at Sasfin Wealth
South Africa’s second-biggest insurer, Old Mutual, has received the go-ahead from the Reserve Bank’s Prudential Authority to launch OM Bank, subject to certain conditions. The insurer said on Friday that its Section 16 application for a banking licence to the Prudential Authority, the body responsible for regulating South Africa’s banking sector, was successful. Old Mutual also completed the necessary bank infrastructure at the end of 2023.
OM Bank has its sights on the mass market, which consists of individuals who typically earn between R1 000 and R30 000 per month and will compete with established players in this segment, such as Capitec. Once fully fledged, OM Bank will join Discovery Bank, TymeBank, and Bank Zero, all of which have entered South Africa’s burgeoning banking sector in recent years. They are all vying to steal market share from traditional banking giants such as Standard Bank, FNB, Nedbank, and Absa.
South Africa’s second-biggest insurer, Old Mutual, has received the go-ahead from the Reserve Bank’s Prudential Authority to launch OM Bank, subject to certain conditions. The insurer said on Friday that its Section 16 application for a banking licence to the Prudential Authority, the body responsible for regulating South Africa’s banking sector, was successful. Old Mutual also completed the necessary bank infrastructure at the end of 2023.
OM Bank has its sights on the mass market, which consists of individuals who typically earn between R1 000 and R30 000 per month and will compete with established players in this segment, such as Capitec. Once fully fledged, OM Bank will join Discovery Bank, TymeBank, and Bank Zero, all of which have entered South Africa’s burgeoning banking sector in recent years. They are all vying to steal market share from traditional banking giants such as Standard Bank, FNB, Nedbank, and Absa.
