Old Mutual strengthens its bench with external hires

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Old Mutual has made several external hires across its insurance and banking businesses as it looks to make inroads in the mass and affluent markets while insurance and retail companies are upping the banking game.To this end, Old Mutual’s banking proposition OM Bank has roped in the services of erstwhile FNB and Standard Bank staffer Ethel Nyembe as chief product and innovation officer.OM Bank, which recently reported a surge in customers from 284,000 at the end of last year to 473,00 in the first three months of this year, has also hired another former Standard Bank and FNB employee as chief growth officer.OM Bank is expected to launch its lending activities in the second half of the year. The fledgling bank’s CEO, Clarence Nethengwe, said the lender aims to redefine what banking means for South Africa’s middle class.“For decades, banks competed on products. Now the real contest is about ecosystems, intelligence, integration and relevance. The winners won’t just offer cheaper accounts; they’ll embed themselves in their customers’ financial lives, helping manage risk, build wealth, enable smarter access to credit and unlock more value from every transaction. That’s the ambition driving OM Bank,” Nethengwe said.“OM Bank is not entering the market as simply another digital challenger focused on capturing share. Rather, it is building a fully integrated financial ecosystem designed for the needs of aspirational South Africans, combining a digital-first experience with accessible human support through the trusted Old Mutual branch network and OM Bank contact centre.”For decades, banks competed on products. Now the real contest is about ecosystems, intelligence, integration and relevance.— CEO, Clarence NethengweOld Mutual mainstay rival Sanlam is also sharpening its banking claws via its partnership with GoTyme, formerly TymeBank. The partnership brings together about 17-million clients.Pepkor’s financial services business is also growing at an exponential rate, adding gravitas to the group’s ambitions to launch a bank and take on the established lenders in the fight for the mass-market wallet. The group on Tuesday reported a 41% rise in revenue to R3bn from its financial services segment in the six months ended March, a surge that lifted the segment’s operating profit by 63.4% to R691m.The retail supermajor, with an arsenal of more than 6,600 stores, last year got the green light from the South African Reserve Bank to open a bank, with its more than 10-million digital clients and expansive branch network giving it a platform on which to build it.With 32-million clients, Pepkor is expected to be a force to be reckoned with as it launches a foray into retail banking.Old Mutual is not only recruiting for OM Bank but is also strengthening its other businesses with new expertise.The financial services group has the founding CEO of Capitec Life, Katherine Barker, in an executive role in the group’s life and savings business, the group’s heartland.Malusi Ndlovu has rejoined the group from Absa and will fill the role of MD of the mass and foundation cluster.The group, worth R60bn on the JSE, has also hired Mari Janzen as COO of the Old Mutual Insure unit — joining from Hollard, where she filled the same role.Group CEO Jurie Strydom said the new appointments constitute a statement of intent that the company is building the bench strength to compete and grow faster and deliver more consistently.“We are delighted to attract external talent with proven expertise and experience to complement our internal talent pipeline. These leaders bring the skills, track records and outside-in perspectives that will make a real and immediate difference to our strategic delivery across the group.”