Pepkor Holdings Appoints Merwe Scholtz to Lead Strategic Launch of Independent South African Digital Bank by 2027

Retail giant Pepkor Holdings prepares to launch an independent bank in South Africa by 2027, leveraging 2,500 stores and targeting underserved consumers.

By: AXL Media

Published: Apr 2, 2026, 3:57 AM EDT

Source: Information for this report was sourced from BusinessTech

The Evolution from Retailer to Financial Disruptor

Pepkor Holdings is transitioning from a traditional retail powerhouse into a full-scale financial services provider. During an investor presentation on Tuesday, March 31, the company confirmed it is preparing to launch an independent bank to capture the "unbanked and underserved" segments of the South African population. By adding deposit-taking capabilities to its existing credit and smartphone sales divisions, Pepkor intends to offer a comprehensive banking suite. This move follows a successful year for the group’s fintech arm, which saw revenue surge 31% to R16.6 billion, now accounting for nearly a fifth of the company’s total sales.

Leveraging a Massive Physical Infrastructure

The core of Pepkor’s competitive advantage lies in its physical reach. While traditional banks are often reducing their branch footprints, Pepkor plans to utilize its more than 2,500 South African stores (6,500 across the continent) to support its digital banking operations. This "bricks-and-clicks" model aims to convert high retail footfall into banking transactions. The company highlighted that among consumers earning below R8,000 a month, 57% currently prefer paying bills through retailers rather than banks, representing a massive pre-existing user base ready for migration to a dedicated Pepkor banking platform.

Leadership and Governance Strategy

To spearhead this ambitious "banking push," Pepkor has hired Merwe Scholtz. The leadership team will be supported by an independent advisory board, which is already largely finalized. In a significant move to bolster its financial credibility, the retailer appointed former Investec Bank CEO Richard Wainwright as an independent non-executive director in December 2025. This high-level expertise is expected to guide the lender through the complex regulatory landscape, following the group's receipt of official regulatory approval to establish a banking unit last year.