{"id":817402,"date":"2025-03-18T09:55:58","date_gmt":"2025-03-18T07:55:58","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=817402"},"modified":"2025-03-18T09:56:04","modified_gmt":"2025-03-18T07:56:04","slug":"south-african-banking-giant-adding-6500-customers-a-day","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/817402\/south-african-banking-giant-adding-6500-customers-a-day\/","title":{"rendered":"South African banking giant adding 6,500 customers a day"},"content":{"rendered":"\n

South African digital banking group TymeBank added over 1.2 million customers between June and December 2024\u2014over 6,500 a day\u2014and shows no signs of slowing down.<\/p>\n\n\n\n

Reporting for the interim period ending December 2024, the group hit 10.7 million customers in South Africa, up from the 9.5 million recorded in June 2024.<\/p>\n\n\n\n

The results were contained in the interim financial report from African Rainbow Capital Investments (ARCI), where the Tyme Group accounts for 16.3% of the fund’s entire R20.5 billion value.<\/p>\n\n\n\n

ARCI’s holdings in Tyme reduced during the period, from R3.93 billion to R3.5 billion due to an investment by Sanlam in ARC Financial Services Holdings, diluting the fair value.<\/p>\n\n\n\n

However, Tyme Group had net fair value gains of R27 million over the period.<\/p>\n\n\n\n

ARCI has also made a new distinction when reporting on Tyme Group, splitting up the disclosures between TymeBank SA (the South African operations) and Tyme Global (international operations).<\/p>\n\n\n\n

Previously, these were considered a single investment due to their shared ownership, strategy and management structure. <\/p>\n\n\n\n

However, since the completion of a $250 million funding round led by global digital bank Nubank, the oversight and evaluation of the global operations have become distinct.<\/p>\n\n\n\n

TymeBank Executive Chairman and co-founder Coenraad Jonker announced the funding in December 2024, laying out the group’s ambitious plans to roll out in Asian markets.<\/p>\n\n\n\n

The funding will also lay the way for an initial public offering by the end of 2028.<\/p>\n\n\n\n

As part of the capital raise, ARC Group took up more shares in TymeBank SA than Tyme Global, thus they are now disclosed separately.<\/p>\n\n\n\n

Tyme Global serves as the holding company for the launch of multi-country banks, including TymeBank in South Africa and GOtyme in the Philippines. <\/p>\n\n\n\n

GOtyme launched in November 2022 and has already hit 5 million customers.<\/p>\n\n\n\n

Notably, while ARC Group holds around 42% of TymeBank, ARCI holds 15.9%. <\/strong>The intrinsic value of ARCI’s investment is R2.26 billion, putting TymeBank’s total valuation around R14.2 billion.<\/strong><\/p>\n\n\n\n

For Tyme Global, the ARC and ARCI shareholding is 33.6%\/12.6%, respectively, with ARCI’s shareholding valued at R1.19 billion for a R9.45 billion valuation.<\/p>\n\n\n\n

Combined, the total value of the Tyme Group is around R24 billion.<\/p>\n\n\n\n

TymeBank performance<\/h2>\n\n\n\n
\"\"<\/a>
TymeBank Chief Executive Officer, Karl Westvig<\/figcaption><\/figure>\n\n\n\n

ARCI said that for the interim period ending December 2024, TymeBank SA showed consistently higher growth in consumer onboarding compared to its international peers.<\/p>\n\n\n\n

This is reflected in the addition of 6,500 customers per day to hit 10.7 million overall, while income-generating transactions have also grown consistently month over month.<\/p>\n\n\n\n

It said total deposits rose to R6.9 billion from R6.3 billion in June 2024, while net advanced increased from R1.9 billion to R2.3 billion.<\/p>\n\n\n\n

The group has been investing in long-term strategies using advanced data analytics and AI to boost customer experience and develop new products.<\/p>\n\n\n\n

ARCI said this would add pressure to short-term profitability for the group, but would result in longer-term gains. <\/p>\n\n\n\n

TymeBank hit breakeven ahead of plan back in December 2023, less than five years since launching in February 2019.<\/p>\n\n\n\n

The bank will also continue to leverage its partnerships with retailers and other fintech companies like TFG, Boxer, Pick n Pay and Kazang to boost value propositions for customers.<\/p>\n\n\n\n

The $250 million capital raise in December 2024 will also allow it to expand its lending portfolio.<\/p>\n\n\n\n

However, the bank’s overall valuation was adjusted downward by R324 million to reflect the price at which the capital raise was completed, ARCI said.<\/p>\n","protected":false},"excerpt":{"rendered":"

South African digital banking giant TymeBank has added 1.2 million new customers in just 6 months\u2014and is showing no signs of slowing down.<\/p>\n","protected":false},"author":10,"featured_media":817418,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961],"tags":[12284,14081,22060,13455],"class_list":["post-817402","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-african-rainbow-capital-investments","tag-arc","tag-arci","tag-tymebank"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/817402","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=817402"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/817402\/revisions"}],"predecessor-version":[{"id":817420,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/817402\/revisions\/817420"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/817418"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=817402"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=817402"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=817402"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}