In a Cape Town boardroom, Sanlam Ltd received the final nod from South Africa’s banking regulators, clearing the way for the insurer to roll out transactional banking services in the first quarter of 2027. The approval, confirmed by chief executive officer Paul Hanratty, means Sanlam can start offering everyday banking products, such as deposit accounts and unsecured personal loans, to its existing client base.
Sanlam is not building a bank from scratch. Instead, it will rely on an agreement with GoTyme Bank, a digital lender backed by billionaire Patrice Motsepe. Under the deal, GoTyme will handle the core banking operations while Sanlam distributes the products to its customers. Hanratty explained that the partnership involves a profit-share arrangement, and that regulators needed assurance that Sanlam would not be performing the work of a bank itself.
How the partnership works
GoTyme is currently beta-testing the offering with a limited group of friends and family. The next step is to open the service to a broader set of customers and intermediaries, ensuring that the technology and compliance systems are ready for a full launch. Once live, Sanlam customers will be able to open deposit accounts, apply for unsecured personal loans, loans that do not require collateral, and purchase life cover (insurance) through the same digital platform.
The move puts Sanlam in direct competition with other South African insurers that have already entered banking. Old Mutual Ltd launched its bank in 2025 and, by June, had amassed 742 000 customers, aiming for one million by the end of August and a break-even point in 2028. Discovery Ltd entered the space in 2019 and reported its first full-year profit in the twelve months ended June. All three firms are betting that bundled insurance-banking products can attract price-sensitive consumers.
For small and medium-size enterprises, the new competition could translate into lower fees and better interest rates on deposits. Hanratty claimed that Sanlam’s scale and product basket would allow it to “reward people in total really well,” suggesting that customers could keep more of their money and access cheaper credit. If the insurer can deliver on that promise, SMEs that currently pay high banking fees may find a more affordable alternative.
The banking push comes after Sanlam reported a 22% drop in adjusted headline earnings, profit before one-off items, to R7.7 billion for the six months to June. The decline was driven by higher weather-related claims, a stronger rand that reduced the value of overseas earnings, and losses on an Indian rupee hedge. Despite the earnings hit, the insurer grew new-business volumes by 22% to R224 billion and saw net client cash flows rise 42% to R78 billion, indicating strong demand for its core insurance and investment services.
Hanratty said the group expects a better second half, citing actions taken to mitigate weather-related losses and an easing of macro-economic pressures. The upcoming banking venture is positioned as a growth engine that could offset the volatility in the insurance side of the business.
What remains uncertain are the exact pricing of the banking products and how quickly customers will adopt the new platform. Regulators have approved the partnership, but ongoing supervision will focus on whether Sanlam stays within the distribution role and does not cross into banking activities that require a full licence.
As insurers, banks and even telecoms race to capture the same pool of customers, the South African financial landscape is becoming increasingly crowded. Sanlam’s entry adds another heavyweight to the mix, and the ultimate test will be whether the promised fee savings and better rates materialise for everyday savers and small business owners.
