New Old Mutual to expand banking and funeral businesses
Soon-to-be-listed African financial services group Old Mutual Ltd is expanding its banking and funeral businesses as it seeks to grow its Mass Foundation cluster, which already has a leading position in SA’s low-income financial services market. The group, which held an investor day at its new Sandton head office on Thursday ahead of its June 26 listing on the JSE, is opening more than 30,000 bank accounts a month and has opened more than 400,000 accounts since it ventured into transactional banking, of which 145,000 are active accounts. That prompted one analyst to wonder on Thursday whether Old Mutual was planning to go up against Capitec in the low-income market, though Capitec, which also targets insurance products, is opening as many as 100,000 accounts a month. Old Mutual Ltd CEO Peter Moyo said the group was not as yet thinking about having a banking licence. The group uses subsidiary Bidvest’s banking licence and though it intends to unbundle much of its 52% stake in Nedbank...
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