The MMI-African Bank tie-up, in terms of which MMI will start offering unsecured loans to policyholders and African Bank selling insurance and investment products to its customers, highlights a move in financial services that has been taking place for some time and that is likely to accelerate. Gone are the days when insurance companies sold only insurance policies and banks provided little more than deposit and credit facilities. The lines that previously separated a bank from an insurance company are becoming increasingly blurred, as these institutions move into each other’s traditional territory. Discovery’s plans to launch a bank in 2018 and FNB’s strategy to cross-sell insurance and investment products to its banking customers indicate that financial services businesses are after an increasing share of their customers’ wallets. The term bancassurance may be unfashionable, but the thesis is the same. The greater the number of financial products clients have with an institution, ...
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