PEP bank to run on OUTsurance-linked tech as top executive joins venture

Johannesburg – Pepkor’s planned PEP bank is set to use technology developed by CloudBadger, the fintech company acquired by Pepkor last year, while OUTsurance’s outgoing group chief financial officer Jan Hofmeyr is expected to join the new banking venture.

According to News24, Hofmeyr is understood to be joining the bank after stepping down from OUTsurance following 18 years as its group CFO.

Hofmeyr’s move comes as Pepkor accelerates plans to establish its own bank, currently known by the codename PlusB. Pepkor acquired CloudBadger in October 2025 for about R252 million as part of its push into financial services. The fintech had previously been jointly developed by OUTsurance and Standard Bank.

OUTsurance announced in April that Hofmeyr would leave the group to pursue an opportunity at a new fintech venture. The company said he would remain until October to ensure an orderly handover.

“Mr Hofmeyr will be taking up a position outside the Group at a new fintech venture,” OUTsurance said in its announcement.

He is due to be succeeded as OUTsurance group CFO by Francois van Rooyen, who joined the group in 2018 and has served as CFO of OUTsurance South Africa since 2022.

Pepkor builds its banking ambitions

Pepkor received approval from the Prudential Authority in November 2025 to establish a bank and submitted its Section 16 application for operational readiness in March this year. The final regulatory step is approval to accept deposits.

The retailer has said it expects to launch the bank in April 2027, subject to regulatory approval.

Moneyweb reported that Pepkor expects the total cost of building the bank to be no more than R920 million, including operating and capital expenditure. About R315 million had already been spent by May, including the CloudBadger acquisition.

Pepkor’s banking strategy is built around its extensive retail footprint. The group operates more than 6,600 stores, while its financial-services businesses include credit, cellular rentals, insurance and payments.

At its capital markets presentation, Pepkor said its banking operation would combine digital services with a physical presence through its retail network. Moneyweb reported that the group is targeting 1.8 million primary banked customers by 2032.

Pepkor confirmed in its latest interim results that it had acquired the CloudBadger financial-services platform and team and had received approval to establish a bank.

The move puts Pepkor among a growing group of non-traditional financial-services players seeking to challenge South Africa’s established banking sector by combining technology with large existing customer bases and retail networks.

The company has previously said its financial-services strategy is aimed at leveraging its retail platform to increase customer lifetime value, while reaching consumers through both stores and digital channels.

With CloudBadger providing the technological foundation and Hofmeyr potentially bringing senior banking and financial expertise to the venture, Pepkor is positioning PlusB for its planned 2027 launch.