{"id":25834,"date":"2025-08-28T16:49:13","date_gmt":"2025-08-28T14:49:13","guid":{"rendered":"https:\/\/www.gauteng.net\/whats-on-g\/?p=25834"},"modified":"2026-03-12T09:56:42","modified_gmt":"2026-03-12T07:56:42","slug":"new-south-african-bank-launches","status":"publish","type":"post","link":"https:\/\/www.gauteng.net\/whats-on-g\/new-south-african-bank-launches\/","title":{"rendered":"New South African Bank Launches to Challenge Capitec"},"content":{"rendered":"\n<p>South Africa\u2019s banking sector is experiencing a new wave of competition as new South African bank launches aim to challenge the dominance of long-established players like Capitec. In particular, Old Mutual&#8217;s much-anticipated launch of OM Bank signals the entry of a formidable competitor in the digital banking landscape. OM Bank\u2019s strategy is to tap into South Africa\u2019s underserved upper mass market, with Capitec\u2019s market share firmly in its sights. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-rise-of-om-bank-a-new-contender-in-the-south-african-banking-sector\">The Rise of OM Bank: A New Contender in the South African Banking Sector<\/h2>\n\n\n\n<p>OM Bank\u2019s entry into the South African banking market comes with a hefty investment of R2.8 billion. Old Mutual bets on its customer base and ability to offer innovative digital banking solutions. The bank targets users earning between R5,000 and R80,000 per month, a segment traditionally served by Capitec. With this strategic positioning, OM Bank seeks to disrupt Capitec\u2019s lead in retail banking.<\/p>\n\n\n\n<p>For more information on recent changes in South Africa&#8217;s banking sector, read our article on <a href=\"https:\/\/www.gauteng.net\/whats-on-g\/absa-shuts-down-more-atms-in-sa\/\" target=\"_blank\" rel=\"noreferrer noopener\">Absa Shuts Down More ATMs in SA<\/a>.<\/p>\n\n\n\n<p><a href=\"https:\/\/mybroadband.co.za\/news\/investing\/593339-secret-weapon-for-new-south-african-bank-taking-on-capitec.html?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">Clarence Nethengwe, the CEO of Old Mutual<\/a>, has spoken about their approach: <em>\u201cWe aim to make banking accessible and affordable for South Africans across all walks of life, especially those who need a more streamlined and customer-friendly banking experience.\u201d<\/em> With the launch of OM Bank, Old Mutual aims to replicate the success Capitec has enjoyed by offering a simple, low-cost alternative to traditional banks.<\/p>\n\n\n\n<div id=\"gaute-2531712484\" class=\"gaute-inbetween-content gaute-entity-placement\" style=\"margin-top: 30px;margin-bottom: 30px;margin-left: auto;margin-right: auto;text-align: center;\"><div class=\"gaute-adlabel\">Advertisement<\/div><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1852772760112594\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-1852772760112594\" \ndata-ad-slot=\"1819787043\" \ndata-ad-format=\"auto\" data-full-width-responsive=\"true\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div><h2 class=\"wp-block-heading\" id=\"h-key-features-of-om-bank-what-sets-it-apart\">Key Features of OM Bank: What Sets It Apart<\/h2>\n\n\n\n<p>Old Mutual bets on its customer base and ability to offer innovative digital banking solutions. Among these features are:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Simple and Fast Sign-Up Process<\/strong>: One of OM Bank\u2019s standout features is its <strong>paperless, quick sign-up process<\/strong>, which can be done in just minutes through the app. This eliminates the hassle of paperwork and allows users to start banking immediately.<\/li>\n\n\n\n<li><strong>My Mobile Banker<\/strong>: OM Bank\u2019s app includes a personal banking assistant called My Mobile Banker, which helps users track their finances, set budgets, and manage their financial goals. This personalised service offers a level of engagement that Capitec\u2019s app lacks, potentially making it more appealing to tech-savvy customers.<\/li>\n\n\n\n<li><strong>Rewards Programme<\/strong>: OM Bank offers a <strong>rewards programme<\/strong>, where users can earn up to <strong>10% in points<\/strong> on qualifying credit card purchases and <strong>2.5% on debit card purchases<\/strong>. These points can be redeemed for cash, vouchers, or airtime.<\/li>\n\n\n\n<li><strong>Competitive Fees<\/strong>: With <strong>R4.95 monthly fees<\/strong> and a variety of free services, OM Bank&#8217;s pricing structure is designed to appeal to cost-conscious consumers. For example, local card purchases are free, and even international card purchases come without additional charges.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-om-bank-fees-transparent-and-competitive-pricing\">OM Bank Fees: Transparent and Competitive Pricing<\/h2>\n\n\n\n<p>One of the key aspects of the new bank appeal is its transparent fee structure, designed to be both affordable and competitive in comparison to traditional banks like Capitec. Below is a breakdown of OM Bank&#8217;s fees for various banking services:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Product<\/strong><\/th><th><strong>Fees<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Monthly Account Fee<\/strong><\/td><td><strong>R4.95<\/strong><\/td><\/tr><tr><td><strong>Credit Initiation Fee<\/strong><\/td><td><strong>Free<\/strong><\/td><\/tr><tr><td><strong>Credit Facility Fee<\/strong><\/td><td><strong>R69<\/strong><\/td><\/tr><tr><td><strong>Cash Withdrawals<\/strong><\/td><td><strong>R10 per R1,000<\/strong> (ATM)<\/td><\/tr><tr><td><strong>Cash Withdrawal at Till Point<\/strong><\/td><td><strong>R2<\/strong><\/td><\/tr><tr><td><strong>Cash Deposit at Till Point<\/strong><\/td><td><strong>Retailer dependent<\/strong><\/td><\/tr><tr><td><strong>Cash Withdrawal (International)<\/strong><\/td><td><strong>R70<\/strong><\/td><\/tr><tr><td><strong>Currency Conversion Fee<\/strong><\/td><td><strong>2.75%<\/strong><\/td><\/tr><tr><td><strong>Card Purchases (Domestic)<\/strong><\/td><td><strong>Free<\/strong><\/td><\/tr><tr><td><strong>Card Purchases (International)<\/strong><\/td><td><strong>Free<\/strong><\/td><\/tr><tr><td><strong>Real-Time Payment (RTP &amp; RPP)<\/strong><\/td><td><strong>Free<\/strong> for values up to R3,000, <strong>R1<\/strong> for values between R3,000 and R50,000, <strong>R6<\/strong> above R50,000<\/td><\/tr><tr><td><strong>Electronic Funds Transfer (EFT)<\/strong><\/td><td><strong>Free<\/strong> for values up to R3,000, <strong>R1<\/strong> above R3,000<\/td><\/tr><tr><td><strong>Debit Order<\/strong><\/td><td><strong>R3<\/strong><\/td><\/tr><tr><td><strong>Airtime &amp; Data<\/strong><\/td><td><strong>R0.50<\/strong><\/td><\/tr><tr><td><strong>Electricity<\/strong><\/td><td><strong>R1<\/strong><\/td><\/tr><tr><td><strong>Bill Payments<\/strong><\/td><td><strong>R1<\/strong><\/td><\/tr><tr><td><strong>Balance Check ATM<\/strong><\/td><td><strong>R10<\/strong> (including international)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div id=\"gaute-1916647061\" class=\"gaute-inbetween-content gaute-entity-placement\" style=\"margin-top: 30px;margin-bottom: 30px;margin-left: auto;margin-right: auto;text-align: center;\"><div class=\"gaute-adlabel\">Advertisement<\/div><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1852772760112594\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-1852772760112594\" \ndata-ad-slot=\"1819787043\" \ndata-ad-format=\"auto\" data-full-width-responsive=\"true\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div><h2 class=\"wp-block-heading\" id=\"h-capitec-s-market-leadership-and-the-growing-competition\">Capitec&#8217;s Market Leadership and the Growing Competition<\/h2>\n\n\n\n<p>Capitec has dominated South Africa&#8217;s retail banking sector for years, boasting over <a href=\"https:\/\/www.joburgetc.com\/business\/om-bank-south-africa-launch\/?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>23 million customers<\/strong>. <\/a>The bank\u2019s focus on offering affordable banking solutions, simplified accounts, and customer-first services has been a significant driver of its success. However, with the entry of OM Bank, this dominance is being challenged.<\/p>\n\n\n\n<p>Despite the rise of new competitors like <strong>Discovery Bank<\/strong>, <strong>TymeBank<\/strong>, and now OM Bank, Capitec continues to perform well in the market, largely because of its <strong>innovative approach<\/strong> and <strong>reliable digital platform<\/strong>. Capitec\u2019s ability to adapt and continually offer new products to its customers is one reason it has maintained such a large market share.<\/p>\n\n\n\n<p>To learn more about getting started with Yoco for your business, check out our guide on <a href=\"https:\/\/www.gauteng.net\/whats-on-g\/buy-a-yoco-card-machine-costs\/\" target=\"_blank\" rel=\"noreferrer noopener\">Where to Buy a Yoco Card Machine for Your Business and How Much It Costs<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-om-bank-s-target-market-the-upper-mass-market-and-affluent-lower-segments\">OM Bank&#8217;s Target Market: The Upper Mass Market and Affluent Lower Segments<\/h2>\n\n\n\n<p>OM Bank is targeting South Africa&#8217;s upper mass market and lower affluent customers\u2014<a href=\"https:\/\/mybroadband.co.za\/news\/banking\/538005-south-africas-new-bank-and-its-fight-against-capitec.html?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">those earning between <strong>R5,000 and R80,000<\/strong> per month<\/a>. This market segment is highly competitive, with Capitec already well-established in this space. However, OM Bank sees an opportunity in offering more tailored banking products designed specifically for the needs of these customers.<\/p>\n\n\n\n<p>In particular, OM Bank plans to leverage its 3.1 million existing low-income customers and 400,000 Money Account users to generate initial traction. With Capitec serving a similar demographic, OM Bank\u2019s focus on <strong>digital banking solutions<\/strong>, including the ability to easily set up accounts via a mobile app, could help it win over this customer base.<\/p>\n\n\n\n<div id=\"gaute-1102388072\" class=\"gaute-inbetween-content gaute-entity-placement\" style=\"margin-top: 30px;margin-bottom: 30px;margin-left: auto;margin-right: auto;text-align: center;\"><div class=\"gaute-adlabel\">Advertisement<\/div><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1852772760112594\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-1852772760112594\" \ndata-ad-slot=\"1819787043\" \ndata-ad-format=\"auto\" data-full-width-responsive=\"true\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div><h2 class=\"wp-block-heading\" id=\"h-om-bank-s-pricing-strategy-competitive-fees-and-rewarding-customers\">OM Bank\u2019s Pricing Strategy: Competitive Fees and Rewarding Customers<\/h2>\n\n\n\n<p>OM Bank\u2019s fee structure is one of the most competitive in the market. A <strong>R4.95 monthly account fee<\/strong> and <strong>free domestic card purchases<\/strong> make it an attractive option for cost-conscious consumers. Additionally, OM Bank offers <strong>low-cost services<\/strong> such as <strong>free digital payments<\/strong>, <strong>no charge on domestic purchases<\/strong>, and reduced fees on international transactions.<\/p>\n\n\n\n<p>The bank\u2019s rewards programme is another major selling point. Users earn 10% in points on credit card purchases and 2.5% on debit card purchases, redeemable for cash, vouchers, or airtime.<br><br> This offers a clear advantage over Capitec\u2019s offerings, which lack a similar rewards programme.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-digital-banking-for-the-modern-south-african-the-role-of-technology\">Digital Banking for the Modern South African: The Role of Technology<\/h2>\n\n\n\n<p>The growing trend of <strong>digital banking<\/strong> is reshaping the financial sector, particularly among younger, more tech-savvy consumers. OM Bank\u2019s focus on providing a <strong>seamless, mobile-first banking experience<\/strong> positions it well to capitalise on this trend. Users can access a range of services directly from their phones, making it an appealing choice for those who prefer to handle their banking needs digitally.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.gauteng.net\/whats-on-g\/wp-content\/uploads\/2025\/08\/gauteng-image-1756390576-1024x576.png\" alt=\"Gauteng News Image\" class=\"wp-image-25844\" srcset=\"https:\/\/www.gauteng.net\/whats-on-g\/wp-content\/uploads\/2025\/08\/gauteng-image-1756390576-1024x576.png 1024w, https:\/\/www.gauteng.net\/whats-on-g\/wp-content\/uploads\/2025\/08\/gauteng-image-1756390576-300x169.png 300w, https:\/\/www.gauteng.net\/whats-on-g\/wp-content\/uploads\/2025\/08\/gauteng-image-1756390576-768x432.png 768w, https:\/\/www.gauteng.net\/whats-on-g\/wp-content\/uploads\/2025\/08\/gauteng-image-1756390576-390x220.png 390w, https:\/\/www.gauteng.net\/whats-on-g\/wp-content\/uploads\/2025\/08\/gauteng-image-1756390576.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Screenshots of OM Bank\/Image: My Broadband<\/figcaption><\/figure>\n\n\n\n<p>In a country where <strong>smartphone penetration<\/strong> continues to rise, OM Bank\u2019s strategy to build its platform around mobile devices could help it attract a <strong>younger audience<\/strong> that values convenience and ease of use. As South Africans move away from traditional banking, digital-first banks like OM Bank are well-positioned to meet demand.<\/p>\n\n\n\n<div id=\"gaute-3543496159\" class=\"gaute-inbetween-content gaute-entity-placement\" style=\"margin-top: 30px;margin-bottom: 30px;margin-left: auto;margin-right: auto;text-align: center;\"><div class=\"gaute-adlabel\">Advertisement<\/div><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1852772760112594\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-1852772760112594\" \ndata-ad-slot=\"1819787043\" \ndata-ad-format=\"auto\" data-full-width-responsive=\"true\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div><h2 class=\"wp-block-heading\" id=\"h-om-bank-s-growth-potential-investment-innovation-and-expansion-plans\">OM Bank&#8217;s Growth Potential: Investment, Innovation, and Expansion Plans<\/h2>\n\n\n\n<p>Old Mutual is not just launching a bank; it is creating a <strong>long-term vision<\/strong> for OM Bank\u2019s growth. After investing <strong>R2.8 billion<\/strong> into the project, the company is committed to additional investments of up to <strong>R1.3 billion<\/strong> until 2028, when OM Bank expects to break even. This shows a <strong>serious commitment<\/strong> to the long-term success of the bank, with a focus on building a robust digital infrastructure and offering competitive products.<\/p>\n\n\n\n<p>In terms of expansion, OM Bank has ambitious plans. By <strong>2026<\/strong>, the bank aims to <strong>expand<\/strong> its offerings to include <strong>fixed and notice deposit accounts<\/strong> as well as more <strong>lending options<\/strong>. This expansion would further solidify OM Bank\u2019s position as a serious competitor to Capitec and other established banks in the region.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-the-future-holds-for-om-bank-and-capitec\">What the Future Holds for OM Bank and Capitec<\/h2>\n\n\n\n<p>OM Bank and Capitec\u2019s competition is expected to intensify before OM Bank\u2019s full public launch in the fourth quarter of 2025. OM Bank\u2019s aggressive pricing, innovative features, and Old Mutual\u2019s customer base position it to challenge Capitec.<\/p>\n\n\n\n<p>Capitec\u2019s response to this challenge will likely be an enhancement of its own digital offerings and a continued focus on customer service. As the market becomes more competitive, both players will need to innovate continually to retain their customers and attract new ones.<\/p>\n\n\n\n<p>For details on Capitec\u2019s new services, read our article on <a href=\"https:\/\/www.gauteng.net\/whats-on-g\/capitec-to-issue-smart-ids-and-passports\/\" target=\"_blank\" rel=\"noreferrer noopener\">Capitec Unveils Plans to Issue Smart IDs and Passports at Branches<\/a>.<\/p>\n\n\n\n<div id=\"gaute-1992314539\" class=\"gaute-inbetween-content gaute-entity-placement\" style=\"margin-top: 30px;margin-bottom: 30px;margin-left: auto;margin-right: auto;text-align: center;\"><div class=\"gaute-adlabel\">Advertisement<\/div><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1852772760112594\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-1852772760112594\" \ndata-ad-slot=\"1819787043\" \ndata-ad-format=\"auto\" data-full-width-responsive=\"true\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div><h2 class=\"wp-block-heading\" id=\"h-om-bank-s-role-in-south-africa-s-banking-revolution\">OM Bank\u2019s Role in South Africa\u2019s Banking Revolution<\/h2>\n\n\n\n<p>The launch marks a significant shift in South Africa\u2019s banking landscape. OM Bank\u2019s digital-first approach, innovative features, and competitive pricing equip it to compete with Capitec and other major players. OM Bank focuses on the upper mass market and lower affluent segments, positioning itself to disrupt the status quo.<\/p>\n\n\n\n<p>As digital banking becomes more prevalent in South Africa, banks like OM Bank will continue to push for innovative solutions, affordable services, and customer-centric models. The battle for South Africa\u2019s banking customers is far from over, and OM Bank\u2019s entry is sure to make the competition more exciting than ever.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>South Africa\u2019s banking sector is experiencing a new wave of competition as new South African bank launches aim to challenge the dominance. <\/p>\n","protected":false},"author":11,"featured_media":25869,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_focus_keyword":"","rank_math_title":"","rank_math_description":"South Africa\u2019s banking sector is experiencing a new wave of competition as new South African bank launches aim to challenge the dominance. ","footnotes":""},"categories":[24],"tags":[5462,5466,1350],"class_list":{"0":"post-25834","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance","8":"tag-banking","9":"tag-capitec","10":"tag-finance"},"_links":{"self":[{"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/posts\/25834","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/comments?post=25834"}],"version-history":[{"count":1,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/posts\/25834\/revisions"}],"predecessor-version":[{"id":25872,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/posts\/25834\/revisions\/25872"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/media\/25869"}],"wp:attachment":[{"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/media?parent=25834"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/categories?post=25834"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/tags?post=25834"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}