Old Mutual aims to develop a proposition for the low-income market (monthly income up to R3500/$460) and deliver access to a broad spectrum of financial services that is not only sustainable but provides real value to clients both individuals and communities in rural and peri-urban environments.
To test alternate distribution challenges, the project will enable delivery of community based and individual product solutions. Old Mutual will in collaboration with the Group companies test the “one stop shop” approach to deliver a full spectrum of financial services.
Through delivery of consumer education programmes, the project seeks to improve the financial literacy of the low income market and stimulate demand for an uptake of appropriately designed and distributed products at group and individual level.
The project targets low-income individuals and communities in peri-urban and rural areas that despite their income levels are economically active and need appropriate access to financial services. The vision is to target an outreach of 1 million clients by 2020.
Old Mutual is a leading international long term savings group, established in 1845 in South Africa and now operating in 38 countries world-wide. Old Mutual operates the largest financial services business in South Africa providing wealth management, investment products, retirement savings, life, disability and health insurance to individuals and groups. Old Mutual operates in other parts of Africa namely Namibia, Zimbabwe, Malawi, Kenya and Swaziland.
Old Mutual is a trusted brand, with a strong market presence among South African consumers across all market segments. Its banking business in Africa is conducted by the Nedbank Group and its South African general insurance business is conducted by Mutual & Federal Insurance Company. Old Mutual has the controlling interest in both companies.
"We recognize the challenges presented by the target market and especially that serving low income communities requires a business model different from traditional commercial financial services business models."
Shailesh Devchand, COO Foundation Market
"The target market we call Foundation and which we seek to understand and deliver to successfully through this initiative is the new mass market of the future. Not only will our presence in this segment be good for Old Mutual, it will be good for South Africa!" Marshall Rapiya, Managing Director Retail Mass market