TymeBank, owned by South African billionaire Patrice Motsepe, has started signing up customers for its new online bank, one of a number of entrants planning to steal clients away from traditional lenders such as Standard Bank Group Ltd. and Absa Group Ltd.<\/p>\n
The Johannesburg-based company has signed up 1,800 clients in the first week of an unofficial launch, Chief Executive Officer Sandile Shabalala said in an interview in the city on Friday. The official opening is scheduled for the end of the first quarter next year, he said.<\/p>\n
TymeBank, controlled by Motsepe\u2019s investment vehicle African Rainbow Capital Investments Ltd., joins at least two other companies seeking to challenge the country\u2019s top five lenders through digital business models. Discovery Ltd., the nation\u2019s largest health-insurance administrator, has said it plans to introduce its banking unit to the public next week.<\/p>\n
Tyme\u2019s account does not charge a basic monthly fee. Instead clients pay for specific services as they use them, with the most expensive transaction in its fee structure, cash withdrawals at ATMs of other banks, costing R8 rand.<\/p>\n
\u201cPeople normally don\u2019t understand bank charges, but this is simple to understand. There are no hidden fees,\u201d Shabalala said. \u201cWhat we are driving to the market is transparency.\u201d The bank isn\u2019t targeting a specific segment of the market, he said.<\/p>\n
Clients will be able to download Tyme\u2019s mobile app for free at any of its 730 self-service kiosks, located in outlets of retailer Pick n Pay Stores Ltd. The bank also pays for data costs related to the app, Shabalala said.<\/p>\n
\u201cThe next step in the journey, obviously, is to get into the lending space and we want to take our time around that,\u201d Shabalala said. \u201cWe don\u2019t have existing customers and first want to understand the profiles of the customers we want to lend to\u201d by offering them transactional accounts, he said.<\/p>\n
While the Prudential Authority of the South African Reserve Bank, which oversees the industry, may not have traditionally allowed a bank to operate solely online, it has permitted Tyme to move ahead with its plans, Shabalala said.<\/p>\n
\u201cTraditionally they would not even have considered for a bank to put its core banking platform on the cloud, that was a definite no-no,\u201d he said. \u201cBut we are the first bank\u201d to be able to do it in South Africa.<\/p>\n