TymeBank has announced that it reached its first month of profitability in December 2023, less than five years since launching in February 2019. <\/p>\n\n\n\n
According to a media statement on Tuesday (16 January), this makes it the first digital bank to break even in South Africa and on the continent. <\/p>\n\n\n\n
“This milestone marks a pivotal moment for South Africa\u2019s only black-controlled bank \u2013 making it one of the fastest-growing digital banks globally and the first African digital bank ever to reach this milestone,” it said.<\/p>\n\n\n\n
\u201cWe are extremely proud of our achievement, particularly when you consider that globally, less than half of the top 100 digital banks are profitable. In fact, a recent study stated that less than 5% of all neobanks worldwide had reached profitability. <\/p>\n\n\n\n
“And of those that are in the black, most have taken a lot longer to become profitable; notable examples being Latin America\u2019s Nubank and London-based Monzo, which took eight and seven years respectively.<\/p>\n\n\n\n
“Having achieved our first month of profitable operations in a significantly shorter timeframe is a South African success story that our 8.5 million customers can share with pride,\u201d said Coenraad Jonker, CEO of TymeBank.<\/p>\n\n\n\n
The bank attributes its success to several key factors, including its model of combining digital channels with in-store kiosks at major retailers. This model has allowed the company to consistently acquire approximately 150,000 customers monthly.<\/p>\n\n\n\n
TymeBank chairperson Thabani Jali said, \u201cOn behalf of the board of directors and TymeBank\u2019s leadership team, I must extend my gratitude for our investors\u2019 continued faith in our vision and their commitment to our collective success.\u201d<\/p>\n\n\n\n
\u201cTheir trust in TymeBank\u2019s team has been instrumental in driving us to this outcome. To appreciate their investment, we are committed to building a sustainable future that delivers a solid return on investment.\u201d<\/p>\n\n\n\n
ARC founder and chairman Dr Patrice Motsepe said this milestone comes after more than four years of \u201cdedicated effort, strategic investments, and an unwavering commitment to the business\u2019s core mission to offer quality banking services to all South Africans\u201d.<\/p>\n\n\n\n
\u201cHaving attracted more than 8.5 million customers, TymeBank\u2019s unique proposition continues to digitally disrupt and transform the banking sector.\u201d<\/p>\n\n\n\n
\u201cAnd as the business evolves, we are seeing it gradually appeal to more affluent consumers who appreciate its unrelenting innovation, customer-centric transparency and accessibility.\u201d<\/p>\n\n\n\n
Jonker said this achievement aligns the bank with its goal of becoming one of the top three retail banks in the country.<\/p>\n\n\n\n
\u201cThis ambitious target is our next measurable benchmark for success, one that will require strategic focus across all areas of our business,\u201d he said.<\/p>\n\n\n\n
\u201cHowever, we are confident that our proven track record of success positions us well to achieve this audacious aim in the next few years.\u201d<\/p>\n\n\n\n