South Africa’s new digital banking entrant TymeBank has shown massive growth in its first four months of full operation, reaching 400,000 customers at the end of May.
TymeBank said it added 107,00 new customers in May, building on the momentum it gained when it full launched in February 2019.
“We are really encouraged by the response from South Africans. They are looking for an alternative that is more affordable, accessible and convenient. We believe we fill that gap,” said TymeBank CEO, Sandile Shabalala.
TymeBank is the first fully-digital transactional bank to launch in South Africa, with competing new entrants – Discovery Bank and Bank Zero – yet to officially open to the public.
It also launched a zero-fee account which has spurred traditional banks including Capitec to cuts its fees, while Nedbank, and most recently FNB, have done the same. Standard Bank, meanwhile, launched a new account.
FNB has also rebranded its digital account, eWallet eXtra, to Easy Zero.
“Our intention has always been to disrupt the retail banking environment. Our competitors’ recent fee reductions are evidence of an industry that is ripe for change, one just has to ask why it’s taken so long,” Shabalala said.
He said that banks lowering fees is good news for all customers, adding that there is room for more to be done.
“Low fees alone won’t cut it. South Africans want better service, better products and a better understanding of their unique financial circumstances.
“Fee decreases are without doubt a good thing for the consumer but we believe there is more to it than shaving off a few cents here and there.”