Old Mutual doesn’t exactly have a reputation for being the most innovative insurer; however, that doesn't mean the same will be said of its bank, writes Nolwandle Mthombeni.
With Old Mutual announcing its intention to launch a bank in 2024, it is worth examining whether having another bank is what South Africans need.
As the economic theory suggests, increased competition drives innovation and lowers prices for consumers. This should result in increased consumer benefits and surplus. Similarly, a lack of competition, especially in monopolies and oligopolies, leads to deadweight loss to society.