🏦 Weekly Edition: OM Bank Signs 5000 Customers Daily

Welcome back to The Banking Brief. Hope you’ve had a restful weekend!

This week been Old Mutual’s news week. Old Mutual steps into the digital arena with OM Bank, aiming to rewrite South Africa’s mass-market banking playbook. With ~50,000 downloads already, it’s shaping up to be a serious contender against incumbents like Capitec. We’ll unpack what this means for the market and why you should be watching closely. Plus, there’s crypto, cross-border payments, and more to stay sharp on. Let’s dive in.

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Golden Nuggets

• Old Mutual takes a bold step, acquiring a majority stake in 10X Investments for R2.2 billion - a super strategic move into digital asset management.

• OM Bank, Old Mutual’s, digital bank is gearing up to challenge Capitec’s marketshare in South Africa’s retail banking space.

• Standard Chartered is exiting its Ugandan wealth and retail banking operations, selling to Absa, signalling shifting priorities for global banks in African markets.

• FNB’s parent, FirstRand expands footprint again with another Zambia acquisition, marking aggressive growth in the region.

Main Stories

Old Mutual Acquires Majority Stake in 10X Investments

Why it matters: Old Mutual’s R2.2 billion majority stake in 10X Investments embeds it firmly in the fintech-driven asset management arena, signalling traditional banks embracing tech-powered investment platforms to attract younger, digital-savvy clients.

Zoom In: 10X Investments is known for using sophisticated algorithms and digital channels to manage wealth portfolios - this move positions Old Mutual ahead in Africa’s digital transition, enhancing customer experience and operational efficiency.

Be smart: Since OMPE (Old Mutual Private Equity) and DiGAME came on board, what was once a modest R3 billion (about $174 million) operation has gone full beast mode: now managing a R68 billion (around $4 billion) in assets. They’ve also got over 60,000 clients on the roster and are the champs when it comes to net inflows into passive products, ETFs, and smart beta strategies. If you're in banking, anticipate more ecosystem building including asset managers integrating AI and digital tools. Legacy firms must safely innovate inhouse or acquire; or risk some form of marginalisation.

Old Mutual’s OM Bank - Signing up 5000 customers a day

Why it matters: OM Bank’s launch which kicked off in August 2025 has heated up. Targeting earners between R5,000 and R80,000 monthly, it’s primed to entice the same segment that turbocharged Capitec’s climb to become a powerhouse. Old Mutual’s heritage - built over nearly two centuries and decades of Nedbank leadership - meets modern fintech muscle, creating a solid recipe for waves in retail banking.

So what? It’s not pocket change we’re dealing with here; Old Mutual’s pumped R2.8 billion into OM Bank’s setup, banking on pushing that to R5 billion by 2027. Starting with 400,000 loyal Money Account users and a R16 billion loan book in the pocket, OM Bank’s geared to grow quite fast, and that’s just the baseline. Their app’s already outpacing several reputable finance apps in downloads and fame - although a few hummingbird-like glitches on Huawei phones and signup speedbumps remind us it’s still early.

This is the crux: Full ownership of their digital platform means no waiting around for legacy systems to catch up - OM Bank can iterate on the fly, adding goodies such as vouchers, bill payments, Lotto buys, and peer-to-peer cash transfers fairly soon.

Be Smart: Converting their existing customer base is one thing, but is the growth sustainable in the long-term? Watch OM Bank’s consumer acquisition strategies and technology stack carefully. Its approach combining digital innovation with an established financial network offers a blueprint for capturing new market segments underserved by traditional banks.

Plus: Addressing early rollout teething problems will naturally be critical. Meanwhile, regulatory frameworks accommodating these digital banks will likely shape future competition and customer choice in South Africa.

Standard Chartered’s Exit in Uganda: Absa Steps In

Why it matters: Standard Chartered’s sale of its Ugandan wealth and retail business to Absa reflects a strategic retreat by some global banks from certain African retail markets amidst economic uncertainty and regulatory complexities.

State of play: Absa, Africa’s largest retail bank by customers, strengthens its presence in Uganda - showing opportunity in consolidation rather than expansion for market leaders.

So what? Understand regional market dynamics and regulatory challenges before entering or expanding: local dominance through acquisition remains a winning strategy in African banking.

FirstRand’s Strategic Zambia Acquisitions

Why it matters: After a recent deal last week, FirstRand doubles down on Zambia, signalling confidence in regional economic growth despite broader macro risks.

Zoom In: These acquisitions will boost FirstRand’s regional portfolio, increase asset base, and possibly improve technological integration across borders.

Plus: For African banking execs, knowing how cross-border mergers can improve scale and tech adoption is key. Integration challenges will naturally arise: focus on harmonising operations and compliance frameworks early.

The Scoop

• Flutterwave now uses Polygon blockchain for cheaper, faster cross-border stablecoin payments across Africa.

• Kenyan crypto payments startup Kotani Pay secures Tether investment, expanding crypto infrastructure in East Africa. Tether Holdings Limited, is the issuer of the world’s largest stablecoin: USD Tether. Tether which itself is fully controlled by iFinex is also the parent of the Bitfinex crypto exchange - it’s a financial company involved in AI projects, Bitcoin mining, and education ventures.

• OpenAI is preparing a historic IPO valued at up to $1 trillion, with potential ripple effects across fintech AI innovations globally.

• South Africa’s Optasia’s imminent IPO tops R23 billion. And yes, this is the largest JSE IPO in years. Early investors in Optasia could enjoy a R5.2 billion payoff following the firm’s impressive growth trajectory. The IPO is set for the 4th of November 2025, with FirstRand already taking a chunk, no doubt led by ex-First Rander CEO Michael Jordaan.

+ This

On this day November 2, 1815 marks the birth of English mathematician and logician George Boole, who created Boolean algebra. This system of logic - using only two values, true and false (or 1 and 0) - is the absolute foundation of all modern digital circuit design and computer programming. In computer programming, this is called a Boolean expression or bool for short. A little nerdy, but hopefully appreciated - score some points with your devs this week!