Digital banking service TymeBank has reached a milestone of having signed up one million customers since its launch less than eight months ago.
Billionaire Patrice Motsepe, through his investment vehicle, African Rainbow Capital Investment (ARCI), acquired a majority stake in TymeBank in 2018.
Speaking in Rosebank In Johannesburg on Thursday (28 November), Motsepe said that South Africa should be proud of producing quality technologists, adding that TymeBank is a product of local success.
He said that to be able to reach a milestone of having a million clients was a great achievement and was mainly due to the bank’s competitive pricing and world class service. “We’ve reached a million today, and we are confident that there are millions more to come.”
Motsepe said that the bank will continue to reach the rural areas, targeting the poor and previously unreachable sector.
Johan van Zyl, co-chief executive officer of African Rainbow Capital, said: “We have high hopes and very high aspirations for this vehicle (TymeBank). We think with TymeBank we have a winner. Today we celebrate the milestone of a million accounts.”
He said that the bank will announce a number of strategic partners over the next few months, which should double, and maybe triple its current size.
TymeBank currently has a strategic partnership with retail giant Pick n Pay, allowing its customers to bank at Pick n Pay and Boxer stores around the country.
Speaking at the BusinessTech FinTech conference in September, Tauriq Keraan, chief executive officer at TymeBank, said that the bank is one of the three fastest-growing digital banks in the world.
Keraan said at the time that the bank had acquired 735,000 customers and 325,000 active customers as of September 2019 – a significant jump from the 500,000 customers in July.
The chief executive said that the value proposition offered by TymeBank has been very well-received by customers, with a strong focus on simplified banking, with fixed fees, charged in forms customers will understand.
While TymeBank is a digital bank, he noted that South Africans are still dealing with cash, and the 17,000 till points at over 1,500 Pick n Pay and Boxer stores across the country have been instrumental in driving its growth.
On top of the transactional account, money transfer service and savings accounts currently offered by TymeBank, Keraan said that the bank had also ‘quietly launched’ unsecured lending and was working on products for small businesses.
Keeran said that both of these features are still being worked on with official launches scheduled for 2020.
“We aim to offer an incredibly quick unsecured lending process,” he said. “The ultimate goal is to have a two-minute process from application to disbursement into the client’s bank account.”
Keeran said that unsecured lending was also necessary for TymeBank to become profitable, with the bank targeting a R2 billion unsecured lending book.