(Alliance News) - Old Mutual Ltd said on Friday it had won regulatory approval to establish a bank, following a "stringent" review.

The Anglo-South African financial services firm said the approval allows it to proceed to the "next critical stage" to establish a bank.

The group said it will now formally transition from "bank build mode" and enter into a strict and rigorous industry testing phase with selected bank partners.

Upon a successful "error-free testing", the new bank will fully integrate into the national payments system, it added.

"Old Mutual is pleased to announce that, following a stringent regulatory review of its application in terms of Section 16 of the Banks Act 94 of 1990, as amended, the Prudential Authority has granted the group approval to establish a bank subject to certain licence conditions," Old Mutual said in a statement.

Chief Executive Office Iain Williamson said the approval to establish a bank is a "material catalyst" in he group's strategic plans.

"It accelerates the fulfilment of our strategic choice to build an Integrated Financial Services business and further strengthens our victory condition to be our customers' first choice to sustain, grow and protect their prosperity," Williamson said.

By Artwell Dlamini, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved.