South Africa’s new bank is here

Old Mutual’s OM Bank is now live, with it notifying existing Money Account clients to begin switching over to the new banking app. 

The email sent to clients encourages them to download the new OM Bank app and outlines steps for customers to transfer funds from their Money Account. 

“Old Mutual’s new banking offering, OM Bank, is now live. As a valued customer, you’re among the first to be eligible to sign up to this new banking offering, ahead of everyone else,” the email sent to clients said. 

Clients can continue to use their Money Account as usual until the end of 2026, after which transactions will be disabled. Their money will remain secure, and you’ll be able to access your funds by getting in touch with Old Mutual.  

“You can move your funds to OM Bank beforehand or to explore other options,” the email said. 

Old Mutual’s Money Account offering, which operates as a transactional banking account with a savings option, is currently administered through Bidvest Bank. 

The insurer’s existing banking offering is substantial, with it having a lending book worth R16 billion and around 400,000 clients using its Money Account. 

It also has an existing network of branches around South Africa, which is set to be leveraged to help service the banking clients. 

The insurer has spent R2.8 billion since 2022 building out the bank and securing the retail banking licence. 

This is not the only cost the insurer will have to absorb. It anticipates an annual loss run rate of between R1.1 billion and R1.3 billion. 

It assured investors that this will reduce over time as revenue is generated, with the bank reaching breakeven in 2028.

The insurer knows that banking in South Africa is a highly competitive space and plans to leverage its existing insurance customers to drive growth. 

Crucially, the launch of its bank will also enable Old Mutual to cross-sell its investment and insurance products to its clients through an app. 

Traditional insurance apps, while costly to set up, are used far less by clients than banking app, making them ineffective platforms to cross-sell products.

OM Bank has already been available to a select group of Old Mutual staff and clients to test its banking functionalities before its launch to the public. 

The bank will offer a range of personal banking solutions, including transactional accounts, savings, and credit products.

Its website currently offers a few products, such as a savings account, transactional account, and credit card. 

In 2026, it plans to add more lending and savings options, including fixed and notice deposit accounts. OM Bank will also launch a service giving clients the ability to send cash or a request to someone’s phone. 

The table below gives a brief overview of OM Bank’s fees.