Old Mutual Bank is taking a measured approach to deploying artificial intelligence (AI) and machine learning (ML) − using advanced data analytics to personalise customer experiences, while retaining a human touch in its service model.
The latest contender in SA’s digital banking space, which was built on a R2.8 billion investment, has signed up 140 000 clients since its soft launch three months ago.
The bank began its on-boarding process earlier this year after a phased rollout that first targeted existing Old Mutual (OM) customers, before opening to the public.
The hybrid bank says it has received a good reception from the public, and on a good day, attracts up to 5 000 new customer sign-ups to its mobile app.
It promises the latest technology infrastructure via a secure digital banking platform, offering cost-effective personal banking solutions, including transactional accounts, savings and credit products.
Ray Deftereos, CIO of OM Bank, told ITWeb during an interview that while the bank leverages machine learning and AI, it has been cautious to ensure people remain at the centre of its customer service, and advanced tech is not deployed at the expense of genuine human interaction.
The bank’s data-driven systems support intelligent recommendations within its mobile app, guiding users toward relevant financial products and services. However, the bank is intentionally pacing the rollout of deeper AI-driven automation until it has sufficient customer data to deliver meaningful, accurate insights, he stated.
“We have an underlying data and machine learning capability that we use for personalisation. In terms of chatbots, generative AI and machine learning, in many cases, those leverage the data that we have, but we don't have that many data sets yet, so that will grow over time.
“We are being a little bit cautious with deploying services that remove human interaction. While we do some clever things inside the app to recommend products and take customers through different journeys, we are cautious about how we deploy AI in a service environment, so that customers don't feel like they have been kept from a human being when they are faced with a real problem. Our focus is on solving real customer problems − not just deploying technology for technology’s sake.”
Hybrid approach
Over the last three-and-a-half years, Old Mutual Bank was constructed as a fully cloud-based platform on Amazon Web Services, designed with a micro services architecture to enable flexibility.
It drew on virtual teams across SA, Hong Kong and the UK, and now supports a hybrid banking model that blends digital with physical accessibility, Deftereos stated.
While the bank’s business model is premised on a digital-first approach – with services conducted primarily via the banking app – as it prepares for its official public launch, it is leveraging its existing network of 300 OM branches across SA for customers who opt for in-person services.
“Unlike traditional banks that evolved from physical branches to digital channels, Old Mutual Bank was designed as a digital-first institution from day one. Customers begin their journey on the mobile app, where they can open accounts, transact and manage finances entirely online. At the same time, the bank leverages Old Mutual’s network of branches, which serve as facilitated service centres rather than cash-handling outlets.”
The majority of the bank’s R2.8 billion investment went into people, systems and technology, he added.
The bank’s team of employees expanded from 100 to 300 during its build phase, and today sits at around 350 – with 200 to 250 forming part of the technology division.
Last October, Old Mutual announced its new mobile virtual network operator (MVNO), Old Mutual Connect, which it said aims to transform mobile connectivity in SA’s lower segment market.
With South African banks such as Nedbank, Capitec, Standard Bank and First National Bank increasingly introducing MVNOs, Deftereos foresees an inevitable tie-up between the service and OM Bank at the right time.
“A tight integration with Old Mutual Connect is something we’d like to see going forward. Like any established bank that is launching new products over time, there is definitely a lot that we have planned. But we are starting with products that resonate a lot with our customers, like airtime and electricity bundles, debit and credit cards, access to credit, etc.
“We see ourselves evolving personal banking services to be the ambient of what customers are looking for, so we definitely expect to see more products over time.”
In the coming months, the bank plans a national marketing campaign to strengthen its brand presence, leading to the official public launch.
Looking further ahead, Old Mutual Bank aims to use its technology to drive financial inclusion and deliver on its mission of improving customers’ prosperity, Deftereos said.
Despite the growing number of banks in SA’s financial sector, he believes there is always room for more competition, as many consumers are not satisfied with the quality of service they receive from their banks.
“South Africa doesn’t just need another bank − it needs a better bank. Our purpose is to help customers achieve their financial goals, and technology is a key enabler of that journey.”
Share