Pepkor has revealed plans to start its banking business in April 2027, using its national store network to reach 1.8 million main banking customers within five years.
Retail groups in South Africa have been expanding into financial services as they look for additional sources of income, Reuters noted.
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Speaking to investors after the company posted strong first-half results, chief commercial officer Garth Napier said the planned bank would link digital and in-store services, allowing customers to carry out transactions at more than 6,500 outlets.
He said Pepkor already handles about 22 million cash-in cash-out transactions each year, as well as 4 million bill payments, highlighting the size of its current financial services operations.
At its capital markets day in March, Pepkor said it was developing an integrated ecosystem supported by higher smartphone usage and increased take-up of financial products such as loans and insurance.
Chief financial officer Riaan Hanekom said the group had previously expected to spend around 1 billion rand ($61.2m) on the new bank, but now forecasts total spending of no more than 920 million rand by the planned launch next April, subject to final regulatory approvals.
Pepkor, the owner of the Pep and Ackermans clothing chains, said it expects to have 1.8 million main banking customers by the fifth year.
The company has received regulatory approval, with conditions, from the Prudential Authority under section 13(1) of the Banks Act to establish a bank in South Africa. It has also completed its section 16 application.
To support the project through PlusB, Pepkor acquired CloudBadger Technologies, a South Africa-based financial services platform and team, with effect from 1 October 2025.
