Prabashini Moodley, CEO designate of Old Mutual’s Life and Savings division, which boasts 6-million customers, aims to improve the group’s competitive position in the savings market.
JSE-listed Old Mutual announced this week that it is combining Personal Finance, Old Mutual Wealth Management, Old Mutual Corporate and the Mass and Foundation Cluster, excluding banking, which will soon launch OM Bank, a digital-first banking offering.
Speaking to Business Times, Moodley, who is presently MD of Old Mutual Corporate, said the segment aims to offer more innovation and value for customers and shareholders.
“The South African financial services sector is extremely competitive, which is great for customers because it means they have choices. It means we can innovate. If you are a provider in that space, you must look at doing things better and offer better value for customers,” she said.
Moodley, who will assume her new role in August, has been at Old Mutual for 23 years in various roles.
Being 180 years old is no guarantee that we will be here in the future. My big ambition is to make sure we are relevant to what customers need today and what they will need in the future
— Prabashini Moodley, CEO designate of Old Mutual’s Life and Savings division
The group this week also announced that OM Bank CEO Clarence Nethengwe will oversee Old Mutual Finance and Old Mutual Transaction Services.
Moodley plans to turn the Life and Savings division into a customer-centric business.
“Old Mutual turned 180 in May,” she said. “Being 180 years old is no guarantee that we will be here in the future. My big ambition is to make sure we are relevant to what customers need today and what they will need in the future. So how do we relook things we do, do it better, do it differently, and bring people together? The environment has changed a lot. Life and Savings is the core of Old Mutual. It is our financial advisers, it is the many millions of South Africans whom we provide savings and protection solutions to.”
While the investment side had done well, further work was required for the business to thrive in a competitive market, she said.
“On investments, we do pretty well; we are in the top three from a market share perspective. From a protection side, the increase in competition means maybe we have not kept up and moved as fast as we could in integrating technology solutions tools for advisers and intermediaries. I think we have work to do there. What we have as an advantage is scale, it is about how to leverage that scale so we can have a better impact in the market instead of working as siloed businesses.”
She said current economic headwinds were proving a challenge for consumers and businesses. This was also reflected in the number of people who have taken advantage of the two-pot retirement system.
“The number of repeat [applications] makes you think of how much is left in that savings pot if you made a withdrawal six months ago, and you are coming again in six months for another withdrawal. How desperate is your situation? That has been eye-opening for us.”
Moodley said that beyond the two-pot system South Africa has to think about solutions for people in non-traditional employment and how the net can be widened.
“There’s still some 50% of people who are not covered even in a savings solution. It is not possible to live on a state pension alone.”
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