It is business as usual for Permanent Bank customers, as well as for clients of Old Mutual Bank.
Nothing is expected to change in the short term for customers following the announcement this week that Nedcor's Permanent Bank and Old Mutual Bank are to merge.
The merger is subject to regulatory and other approvals, including approval from the Registrar of Banks, and is expected to take between six and 12 months from the date that approval for the proposed transaction is received, says Derek Muller, the executive director of Nedcor.
To ensure a smooth transition for clients the Permanent Bank brand will run in parallel with the Old Mutual Banking Services brand until the businesses are integrated, he says.
It will be banking as usual for clients. Changes will be gradual and "we will ensure that clients are kept abreast of developments throughout the process", he says.
As a Permanent Bank client, you can look forward to enhanced products and services, particularly in the areas of investments and home loans.
Permanent Bank clients will benefit from access to a wider range of assurance and investment products, more choice in delivery channels and access to Old Mutual's financial planning expertise.
Old Mutual Banking Services clients, who could only bank via intermediaries, the telephone and the internet, will get access to a physical branch network, card and ATM facilities as well as an enhanced suite of banking products and services.
The integration process and wider range of delivery channels will see a restructuring of the existing Permanent Bank branch network. This is likely to involve relocation or closure of some branches, Muller says.
Eugene Smith, the head of Old Mutual Bank, will become the chief executive of the new bank.
Old Mutual and Nedcor will each have a 50 percent interest in Old Mutual Bank.
Old Mutual Banking Services is a division of Old Mutual Bank, which was awarded a full banking licence in 1999. It was launched in July this year as a wealth management bank for the broad middle market with a focus on savings and lending products.
Initial products included fixed and notice deposits and savings accounts.
Permanent Bank has 80 branches, situated mainly in metropolitan areas, and 600 000 staff. Although the bank offers a full range of banking products, it focuses on home loans, investments and savings products.