South Africa’s new fully digital bank, TymeBank, says that it will hit 500,000 customers by the end of July 2019, and is on track to hit one million customers by the end of the year.
The banking group has published its latest investor prospectus, detailing its customer acquisition since launching in February, and how it plans to expand its value proposition moving forward.
TymeBank said that its client acquisition has been “robust” and showed an accelerating trend over the last few months.
After onboarding around 40,000 clients during its ‘soft launch’ phase between November 2018 and February 2019, the bank then moved to a high growth phase where it was adding 4,000 new clients a day.
Chief executive officer, Sandile Shabalala said the group is averaging 100,000 new customers each month.
The bank said that it has a total addressable market of around 21 million customers in the middle market, as well as 2 million small-to-medium enterprises, which opens up the potential for products and services it wants to introduce.
On top of the transactional account, money transfer service and savings accounts, there are plans in place to introduce credit cards, unsecured loans as well as to introduce a third party partner.
Rain recently announced a partnership with Tymebank to test the distribution its SIM cards at Tyme kiosks, making it easier for its clients to sign up for a new service. Rain and Tymebank have a common shareholder, African Rainbow Capital (ARC), which means the two companies enjoy a strong collaborative relationship.
As part of its acquisition strategy, TymeBank said it will further leverage its partnership with Pick n Pay and Boxer stores, which gives it access to 730 physical stores across the country.
Pick n Pay’s SmartShopper rewards programme exposes the bank to a customer base of seven million people, while the ecosystems within its parent ARC also gives it access to almost 4 million customers via asset managers and insurance groups.