Sanlam expands financial services with South Africa banking launch

Sanlam,  Africa’s largest insurer linked to South African billionaire Patrice Motsepe, is moving closer to becoming a broader financial services provider in South Africa, with the insurer set to soft-launch its new banking services on Nov. 1, 2026, before a wider rollout in the first quarter of 2027. 

The launch follows regulatory approval for Sanlam to introduce transactional banking services, expanding its relationship with customers beyond insurance and investments.

The initial phase will be limited to staff, intermediaries and selected clients, allowing the group to test the platform before taking it nationwide. 

Sanlam said the rollout remains subject to key deliverables, including Apple Pay functionality.

The group described transactional banking and the expansion of its retail credit business as priorities, highlighting the strategic importance of the move as it seeks to deepen its presence in customers’ everyday financial activities.

Sanlam enters a growing banking market 

Sanlam first announced plans to enter banking in September 2025, initially targeting a 2026 launch. Its move followed a partnership with TymeBank focused on unsecured personal loans bundled with credit life cover. 

The timetable has since shifted from an earlier target of mid-2026. Sanlam CEO Paul Hanratty said in 2025 that the group hoped to begin testing with family and friends before entering the market around the middle of 2026. 

Sanlam is entering a market where other major insurers are also expanding their financial services offerings.

Old Mutual has already launched OM Bank, increasing competition among South Africa’s large financial groups for customers’ banking relationships.

Earnings under pressure as banking plans advance 

The banking expansion comes as Sanlam navigates weaker earnings. Core earnings increased just 1% year on year in the six months, while operating profit fell about 7% to R7.3 billion($453.06 million) from R7.9 billion($490.30 million), mainly because of lower positive investment variances. 

Headline earnings were also affected by weaker equity markets, higher interest rates and adverse mark-to-market movements on Sanlam’s investment in Ninety One following the transaction’s completion in February 2026. 

The group also cited elevated weather-related general insurance claims across South Africa and parts of Africa, while rand strength reduced the translated value of earnings from businesses outside South Africa.

Both headline earnings per share and diluted HEPS fell 15% between the 2025 and 2026 interim periods. 

Despite the earnings pressure, Sanlam reported a 22% increase in new business volume to R224 million($13.9 million), giving the group a stronger base as it prepares to add banking to its financial services portfolio.