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Pepkor Holdings hired Merwe Scholtz to lead a new banking push as Africa\u2019s largest clothing and mobile phone retailer prepares to launch an independent lender as early as next year.<\/p>\n
The Cape Town-based company already sells smartphones and extends credit to customers, and said in an investor presentation Tuesday that adding deposits would complete a full-service banking offering \u2014 confirming earlier Bloomberg reporting that it was weighing such a move.<\/p>\n
With about a sixth of South Africans unbanked or underserved, Pepkor is following retailers, including Shoprite Holdings,\u00a0in using customer data to expand into financial services, while targeting shoppers already transacting in-store but not fully captured by traditional banks.<\/p>\n
Pepkor plans to use its more than 6 500 stores to support the digital bank, with build costs of less than R1 billion ($58 million) and a return-on-equity target exceeding 30% by the fifth year. The group said its model combines retail footfall, device distribution and financial services on a single platform \u2014 a mix it sees as unique in a market where banks dominate income and risk segmentation, retailers drive traffic and telecommunications firms control the device layer.<\/p>\n
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The strategy builds on significant existing activity across its business, including more than 2 million money transfers, over 22 million cash withdrawals and about 65 000 loans already processed.<\/p>\n
Read: Pepkor rethinks Investec tie-up as it eyes solo bank startup<\/p>\n
It is also aimed at lower-income consumers, Pepkor\u2019s core customer base, who typically earn less than R15 000 a month. Among those earning below R8 000, 57% prefer paying bills through retailers compared with 36% via banks, the company said, underscoring the scope to shift more transactions onto its platform.<\/p>\n
Pepkor received regulatory approval last year to establish a banking unit and has since acquired a financial-technology platform to support the expansion. An independent advisory board, already largely in place, will oversee the lender.<\/p>\n
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Read: Pepkor seeks money chief as top Africa clothes seller plans bank<\/p>\n
In December, the retailer appointed former Investec Bank Chief Executive Officer Richard Wainwright as an independent non-executive director.<\/p>\n
Pepkor\u2019s fintech revenue rose 31% to R16.6 billion in the year through September, accounting for 17% of total sales.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n<\/p><\/div>\n