Old Mutual enters the ring

OM BANK: 2028 IS THE ENVISAGED TARGET YEAR IT IS EXPECTED TO START MAKING PROFIT

- Moneyweb

Old Mutual is targeting 2028 as the year in which its new bank (officially “OM Bank”) turns profitable.

To achieve this, it needs to attract between 2.5 million and three million customers, nearly 500 000 of whom it expects to be dormant.

It has signed up 140 000 new OM Bank customers since August, with around 80 000 of these joining during this month.

Old Mutual will launch the bank publicly next month. It is currently signing up more than 5 000 customers a day. This is roughly in line with Capitec's rate of customer acquisition this year.

Of the nearly three million account holders OM Bank needs to turn a profit, it will help its roughly 500 000 existing Old Mutual Money Account (transaction and savings) customers move to the new platform. By the end of next year, the Money Account will be shut down.

Then it hopes to get one million of its existing customers across other segments – life, investments and insure – to sign up to the bank, and more than 1.1 million customers who are new to the group.

By the 2.8 million mark, it expects 1.6 million customers to be what it terms “more active”, doing seven or more transactions a month, with the remaining 700 000 non-dormant ones performing fewer than that.