2 weeks Ago
Old Mutual has launched a mobile virtual network operator (MVNO) that has cloned Capitec Connect's aggressive data pricing strategy. Although it hasn't named its main rival directly, Old Mutual has made no secret of its ambitions to go after Capitec's customer base. Old Mutual Connect is its latest shot across Capitec's bow.
The financial service provider plans to launch its new bank, OM Bank, before the end of 2024. It will target the upper mass market and lower affluent customers who earn between R5,000 and R80,000 per month. This is the segment where Capitec has seen tremendous success, rapidly growing to serve over 20 million customers since its launch in 2001.
Even though OM Bank has not yet launched, Old Mutual recently revealed it already has a million customers for its transactional banking capability. Bidvest Bank currently administers its Money Account, but this will change before the insurer and investment service provider's new bank is launched. To compete against the established bank, Old Mutual said it would leverage the existing 3.
1 million lower-income South Africans served by its Mass and Foundation insurance cluster. This cluster serves low-income and lower-middle-income individuals, who typically earn between R1,000 and R30,000 per month. Earlier this week, Old Mutual announced the launch of an MVNO, promising that it will offer competitive mobile services that will transform mobile connectivity in the lower-income market.
"Affordable data and reliable connectivity is critical for our customers in the Mass Market to fully participate in the mainstream economy," stated incoming OM Bank CEO...
Jan Vermeulen.
