Billionaire Patrice Motsepe is set to challenge South Africa’s biggest banks with investment company African Rainbow Capital (ARC) close to securing a banking license.
According to Bloomberg, the Commonwealth Bank of Australia has said it will sell 10% of digital banking company, Tyme, to ARC, after buying the business in 2015.
Tyme was granted a provisional license by the South African Reserve Bank in 2016.
“The license is expected before the end of September,” Johan van der Merwe, co-chief executive officer of African Rainbow Capital, told Bloomberg.
The regulator is looking at the cloud-based system that ARC’s fintech partner is using to make sure it works before granting the full license, he said.
Tyme joins the likes of financial services company Discovery, and the South African Post Office in securing a provisional license.
“The South African banking environment is due for a bit of disruption,” van der Merwe said.
The Australian reported that Tyme was signing up 5,000 new customers each week, following the the Commonwealth Bank of Australia’s acquisition for a reported AU$40 million.
In July, African Rainbow Capital announced that it invested in 20% of fixed and mobile data network operator, Rain, of which former FNB CEO, Michael Jordaan is a director and shareholder.