• Pepkor receives regulatory clearance from the Prudential Authority.

• The group expands beyond retail with a planned banking offer by March.

• Strong 2025 results support its move into financial services.

Pepkor, South Africa’s leading clothing retailer, has received approval from the Prudential Authority to operate in the banking sector. The announcement was made on Tuesday, November 25.

This new step for the company follows its recent acquisition of Cloudbadger, a fintech software platform that will support the technology architecture of its upcoming banking activity.

"The platform that we acquired...and the team that comes with that is actually a key ingredient to developing this opportunity," said Pieter Erasmus, the group’s chief executive officer, in comments reported by Reuters.

With this move, the company opens a new chapter in its diversification strategy beyond retail sales of accessories, fast-moving consumer goods, furniture, and household appliances.

Pepkor, the largest seller of clothing and prepaid mobile phones in Africa, plans to unveil details of its banking offer by March. It will join other major retailers such as Shoprite and Pick n Pay, which already provide basic financial services including money transfers, bill payments, and cash withdrawals.

The company will also face strong competition from established banking operators such as First National Bank, Absa, Nedbank, and Standard Bank.

The announcement comes as the group reports solid financial performance. Revenue rose 12 % to 95.3 billion rand ($5.5 billion), while operating profit increased 13.2 % to 11.1 billion rand in its fiscal year ending September 2025.

In addition, revenue from its fintech unit grew 31 %, reaching 16.6 billion rand over the period under review.

OLODO Espoir