Old Mutual, a prominent financial institution, has recently undergone significant management changes that are set to reshape its banking operations in South Africa. The announcement detailed key shifts in leadership roles within the organization.
One of the pivotal changes is the appointment of Clarence Nethengwe as the executive tasked with new responsibilities within the company. Nethengwe, who previously served as the Managing Director for the Mass and Foundation Cluster, will now take on a more extensive role overseeing Old Mutual Finance and Old Mutual Transaction Services.
In a strategic move to bolster its presence in the banking sector, Old Mutual is gearing up for the highly anticipated launch of OM Bank. This endeavor has been marked by meticulous planning and substantial investments. Between 2022 and 2024, Old Mutual allocated a substantial sum of R2.8 billion towards establishing the bank and securing essential licenses.
Jurie Strydom, recently appointed as Group CEO, expressed enthusiasm about these changes, emphasizing their significance in advancing Old Mutual’s banking agenda. He underscored how these developments align with the forthcoming national rollout of OM Bank scheduled for Q4 2025 after encountering minor delays along the way.
Strydom shared insights into what lies ahead for OM Bank stating that although an initial loss is projected during its inception phase – estimated at R1.1 billion to R1.3 billion – he expects it to break even by 2028. Such foresight exemplifies a long-term vision aimed at establishing OM Bank as a formidable player in South Africa’s banking landscape.
Furthermore, Prabashini Moodley’s appointment as CEO of the newly restructured Life and Savings segment signifies another crucial aspect of Old Mutual’s strategic realignment efforts. Moodley brings a wealth of experience from her tenure at Old Mutual Corporate since 2002 and her background as an actuary.
The Life and Savings segment under Moodley’s leadership will encompass four vital business divisions: Personal Finance, Old Mutual Wealth Management, Old Mutual Corporate, and The Mass and Foundation Cluster (MFC) – excluding banking operations. This restructuring aims to enhance operational efficiency while leveraging scale advantages to better serve customers and intermediaries.
Reflecting on Moodley’s new role within the organization, Strydom expressed confidence in her capabilities stating that
“I am confident that Prabashini will bring clarity, energy, and accountability needed to lead her team.”
This sentiment underscores high expectations regarding Moodley’s ability to drive value creation across various business units under her purview.
The imminent launch of OM Bank coupled with strategic leadership adjustments within key segments like Life and Savings signal an exciting chapter for Old Mutual as it navigates through dynamic market conditions while setting its sights on sustainable growth prospects.
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