Old Mutual refocuses: Cost savings, digital innovation, growing market share

OLD MUTUALS bank is gaining 5 000 new clients a day and is part and parcel of a refreshed strategy put in place by the CEO of five months, Jurie Strydom, to improve competitiveness, deepen market leadership, and unlock long-term value.

- EDWARD WEST

“Through cost savings, balance sheet strength, and digital innovation, we are creating a simpler, faster, and more connected business that is closer to customers, more agile in the face of change, and well positioned to deliver long-term, sustainable growth for shareholders and society,’ Strydom said in an address at the group’s Capital Markets Day on Tuesday.

Cost targets for the group, which has 13.7 million customers, entail R2.5 billion in savings by the end of the 2027 financial year and R1 billion by the end of the 2026 year.

Margin recovery would be driven through leaner operations and digital transformation. Competitiveness would be strengthened in South Africa, while profitable growth would be scaled in the broader region. OM Bank was on track, after about R5 billion spent to establish the bank, to reach monthly break-even by the 2028 financial year.