Huge leadership change at South Africa’s newest bank — which hasn’t launched yet

Old Mutual has announced the appointment of Clarence Nethengwe as CEO-designate at Old Mutual Bank (OM Bank), effective 1 November 2024, pending regulatory approval.

The company also announced the resignation of Rolf Eichweber and Royden Volans, effective 31 July 2024.

Eichweber served as CEO of OM Bank-Build, while Volans was COO. To ensure a smooth leadership transition, the pair will remain in their positions until 31 October 2024.

Old Mutual said Nethengwe has significant experience. He has been with the company for more than 15 years, during which time he oversaw Old Mutual Finance.

“Clarence also oversees the housing Home Loan book of over R5 billion in Housing Investment Partners, a subsidiary of Old Mutual,” Old Mutual said in a statement.

“He is ideally positioned to foster collaboration and synergies between Old Mutual branches, the MFC business, and the broader Old Mutual Group.”

Old Mutual Group CEO Iain Williamson says the transition from a “bank build” to a “bank run” phase marks a milestone in the OM Bank journey.

“While we greatly value the immense contributions of Rolf and Royden, we are confident that we have the right skills and leadership in place to take the bank forward and ensure its success,” he added.

“Old Mutual remains committed to the continued success of Old Mutual Bank and will continue to invest in both capital and talent to build on the strong foundation laid by Rolf and Royden.”

Old Mutual hopes to launch OM Bank by the end of the year. It filed its Section 16 application earlier in the year and received approval from the Prudential Authority in April.

The Prudential Authority’s approval came just short of two years after Old Mutual received its banking licence.

Williamson believes adding transactional banking capabilities to Old Mutual’s operations will help it engage more regularly with customers.

OM Bank is built using 10x Banking’s cloud technology, which Old Mutual says will enable it to offer personalised, affordable, and flexible services.

Old Mutual also believes that having a bank to accept retail deposits will provide a more affordable source of funding. It hopes that OM Bank will be profitable within three years.