Old Mutual appoints group stalwart to head the bank it is likely to launch in the next few months
Old Mutual Group’s announcement of the proposed appointment of Clarence Nethengwe as CEO-designate of Old Mutual Bank or “OM Bank”, effective November 1, is an indication the group is on schedule to launch the latest bank in SA before the end of the year,
Nethengwe, a long-standing executive of Old Mutual, was suitably qualified to lead the bank as it prepares to go live, Old Mutual said in a statement on Friday. As its next growth phase took off, the bank would ramp up more hires, Old Mutual Group CEO Iain Williamson said in a statement.
By March the group had spent R1.79 billion on building its bank – the infrastructure and digital platforms were finished last year – and a further R800 million was budgeted to be spent before it planned to launch the bank before the end of this year. The Prudential Authority approved the establishment of the bank in April.
The bank faces fierce competition, not least from the increasingly agile major banks, and from fast growing and still relatively new entrants such as Discovery Bank, Tyme Bank and Bank Zero, which have challenged the status quo with innovative services and lower-priced banking.
Other new entrants include the Young Women in Business Networks’ Nthabeleng Likotsi Mutual Bank and the Department of Women Youth and Persons with Disabilities-led bank initiative, the Innovative Financial Services Cooperative (SAIFSC).
The government is also working on Reserve Bank approval for a full bank licence for Post Bank – it previously just offered savings accounts. As of last October, there were 30 banks in South Africa, of which 12 were foreign owned with local branches.
Old Mutual on Friday also announced the resignations of Rolf Eichweber, CEO of OM Bank-Build, and Royden Volans, COO of OM Bank-build, effective July 31, 2024. Both would remain in their positions until October 31, 2024 for a smooth leadership transition.
Old Mutual said the bank was a crucial part of its integrated financial services strategy and Nethengwe was well-positioned, as the MD of Mass & Foundation, to ensure seamless alignment across the group.
“The transition from a 'bank-build' phase to a 'bank run' phase marks an exciting new chapter in our journey. While we greatly value the immense contributions of Rolf and Royden, we are confident we have the right skills and leadership in place to take the bank forward and ensure its success,” Williamson said.
The leadership of the group’s Retail Mass segment would soon be transitioned to a new leader, allowing Nethengwe to focus on his broader responsibilities.
Nethengwe has been with Old Mutual for over 15 years. His experience includes overseeing Old Mutual Finance, Old Mutual’s unsecured lending business with a book of R16bn. It also houses their transactional banking capability with over one million customers.
In addition, Clarence also oversees the housing Home Loan book of over R5bn in Housing Investment Partners, a subsidiary of Old Mutual.
Nethengwe had also been instrumental in developing the initial business case and appointing the first key executives for the bank, and he had experience in overseeing the launch and build-out of the Old Mutual money account value proposition. He also chairs the Board of Old Mutual Transaction Services, which houses this value proposition.
BUSINESS REPORT