Old Mutual Bank CEO gets green light from reserve bank

Old Mutual, a leading financial services group in South Africa, is gearing up to launch its digital-first bank this year. The company recently received approval from South Africa's Prudential Authority to appoint Clarence Nethengwe as CEO. Nethengwe, who has a proven track record of building successful businesses within Old Mutual, is set to lead the charge in revolutionizing the country's banking sector. In a recent interview with CNBC Africa, Nethengwe outlined his vision for the new bank and shared insights into the growth strategy and customer focus of the upcoming venture. The appointment of Nethengwe comes at a crucial time as Old Mutual makes strategic moves to establish itself as a key player in the competitive banking industry of South Africa. With plans to adopt a phased approach to the bank's launch, Nethengwe aims to ensure a seamless and successful entry into the market. The first phase involves internal stakeholders signing up, followed by a gradual rollout to existing customers and eventually opening doors to the general public by the end of the year. Nethengwe's vision for the bank is centered around targeting the mass market in South Africa, catering to a wide range of customers, including the formally employed, informally employed, and students. By focusing on providing accessible and transparent banking services, the new bank aims to challenge traditional norms and offer a fair fee structure to meet the needs of price-sensitive customers. One of the key differentiators for the upcoming bank is its emphasis on leveraging technology to operate as a low-cost entity. By integrating innovative solutions and digital frameworks, the bank plans to enhance efficiency and deliver a customer-centric experience. While profitability remains a priority, Nethengwe stresses the importance of providing value to customers and building a solid foundation for sustainable growth. In terms of growth projections, Nethengwe envisions the bank becoming a significant player in the South African banking space. With an initial customer base of one million, including 400,000 active customers from the existing platform, the bank is positioned to accelerate its growth trajectory. Nethengwe remains optimistic about achieving breakeven within three years and aims to establish a strong presence in the market. As the bank gears up for its official launch later this year, Nethengwe encourages qualified individuals to explore job opportunities within the organization. With a focus on recruiting top talent in data engineering and related fields, the bank aims to tap into South Africa's skilled workforce and drive innovation in the banking sector. While some banks expand their operations beyond national borders, Nethengwe's immediate focus is on establishing a strong foothold in South Africa. With Old Mutual already having banking operations in other African countries, Nethengwe's priority is to propel the new bank to success within the local market. Overall, Clarence Nethengwe's appointment as CEO of Old Mutual's upcoming digital bank marks a pivotal moment in the company's journey to redefine banking in South Africa. With a customer-centric approach, a focus on technological innovation, and a commitment to transparency, the bank is poised to shake up the traditional banking landscape and carve a niche for itself in the competitive industry.