Old Mutual has officially launched its new digital bank, OM Bank, in South Africa, positioning itself to compete with leading banks like Capitec by targeting the mass-market segment[2]. The launch follows several years of preparation, with Old Mutual investing nearly R3 billion since 2022 to build the bank after securing its banking license from the South African Reserve Bank in early 2024[2][1].
OM Bank rolled out a quiet soft launch earlier in 2025 and is now open to the public, offering a digital-first banking experience aimed at millions of South Africans[2]. Old Mutual’s existing Money Account clients are being migrated to the new OM Bank app, while Money Market Accounts will continue to operate until the end of 2026, with customers encouraged to transfer their funds before then[2].
The bank’s launch comes amid an already competitive environment, as OM Bank will go up against both established banks and newer fintech entrants. The leadership team is headed by Clarence Nethengwe, previously Managing Director of Old Mutual’s Mass and Foundation Cluster, and Nomkhita Nqweni as the inaugural chairperson[2]. OM Bank is expected to post initial annual losses of around R1.1 to R1.3 billion until it reaches profitability, which is projected for 2028[1][2]. The bank aims to expand its offerings in 2026 with new lending and savings products, including fixed-term and deposit accounts[4].
The official national rollout follows earlier delays relating to regulatory requirements, with full-scale operations planned for the fourth quarter of 2025[3]. Old Mutual initially plans to serve its Money Account cardholders before expanding to the general public[1].
References
- [1] Old Mutual Launches Bank With Plans to Break Even in Three Years – Daba Finance
- [2] OM Bank Launches in South Africa to Challenge Capitec – Joburg ETC
- [3] oldmutualsa is preparing to launch a new retail bank in South Africa … – Instagram
- [4] OM Bank begins inviting customers before public launch – Traders Union