OM Bank aims to redefine what banking means for South Africa’s middle class

Although these pressures exist, much of the banking still operates as if customers exist to serve the institution, rather than the other way around.

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.

S&P Global makes the important point in a recent report that diversified business models will help stabilise SA banks’ profitability.

McKinsey highlights the extent of the untapped potential: African banks delivered ROEs of 19% in 2024 and 17% in 2025, well above the global average of 10% over the same period. While the sector’s long-term potential for scale is significant, persistent challenges—such as gaps in access, infrastructure, and trust, along with macroeconomic headwinds—continue to limit its full potential, it says.

It is interesting to note that the South African “neo banking” - 100% digital banking - market size reached USD 1.37 billion in 2024. The market is projected to reach USD 49.21 billion by 2033, exhibiting a compound annual growth rate (CAGR) of 43.11% during 2025-2033, according to Imarc research. This is the new battleground and will increasingly be based on cost and value. Older, traditional models will need to scale up fast or be left behind.

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.

The timing couldn’t be more critical. Consumers are increasingly distrustful of fragmented financial services, where banking, insurance, investments and rewards remain siloed. They demand simplicity, transparency, speed and tangible value. They want institutions that see their full financial picture, not just isolated products.

Here, Old Mutual’s broader ecosystem provides a strategic advantage few can match. With more than 180 years of heritage and a footprint across insurance, savings, investments, and lending, OM Bank enters the market with rich behavioural and financial insights, critical assets for reimagining how customers are assessed, served, and rewarded.

The real disruption isn’t the app; it’s the intelligence powering the platform. By leveraging cloud-native infrastructure and embedded AI, OM Bank is moving beyond outdated banking built on rigid systems and slow processes. Real-time capabilities eliminate friction, while integrated data enables dynamic pricing, smarter risk assessment, and ever-more personalised solutions.

In practice, this means fairer access to credit, more accurate affordability checks, and products built around actual customer behaviour, not blunt, traditional scoring. That is important in a country where millions of responsible, economically active consumers remain underserved.

Yet technology alone won’t win the race. South Africa’s digital banking market is crowded and increasingly commoditised. The true differentiators are trust, scale, and the ability to deliver meaningful, everyday utility. Consumers don’t want another standalone bank account. They want a platform that simplifies life.

The new frontier is the convergence of banking, insurance, investments, payments, rewards, and value-added services within a single ecosystem. Banking is evolving from a transactional service to a lifestyle infrastructure. OM Bank gets this.

Its strategy is based on the belief that future monetary growth depends on deepening engagement across multiple touchpoints, not on pushing isolated products. The more integrated the relationship, the better institutions can price risk, reduce acquisition costs, boost loyalty and create mutually reinforcing value.

This also unlocks an increasingly sustainable economics. As digital scale grows and operations become more efficient, leaner cost structures allow sharper pricing and broader access. Crucially, OM Bank’s approach isn’t just about affordability. South Africa’s middle class is tired of the race to the bottom. Increasingly, value, convenience, flexibility and empowerment matter more than price alone.

There’s also a deeper structural challenge. South Africa’s economic resilience depends on financial institutions helping consumers move from vulnerability to long-term stability. Better saving, responsible credit, integrated planning, and smarter risk management are now central, not peripheral, to the nation’s future. Banks that fail to adapt risk irrelevance. Those who solve these problems can become authentic growth platforms.

OM Bank’s journey is just beginning. Success requires trust, regulatory discipline, capital and patient execution. But the direction is clear: The future belongs to banks that integrate seamlessly into customers’ lives, reduce complexity, personalise value at scale, and build ecosystems robust enough to remain relevant in a fiercely competitive landscape.

South Africa doesn’t need another bank account. It needs a financial partner for a new era of economic pressure and opportunity. DM

Author: Clarence Nethengwe, CEO OM Bank