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- Patrice Motsepe-backed TymeBank has turned its first monthly profit in less than five years after launch.
- The group claims it is the first digital bank to break even in Africa.
- TymeBank now wants wants to be among the top three retail banks in South Africa.
- For more financial news, go to the News24 Business front page.
TymeBank reached its first month of profitability in December 2023, less than five years since its launch in February 2019.
The bank, which is backed by billionaire Patrice Motsepe's African Rainbow Capital (ARC), says this milestone makes it the first digital bank to break even on the African continent. TymeBank has about 8.5 million customers in South Africa.
“We are extremely proud of our achievement, particularly when you consider that globally, less than half of the top 100 digital banks are profitable," said Coenraad Jonker, CEO of TymeBank, in a statement.
TymeBank, which also expanded into the Philippines in October 2022 under the GoTyme brand, attributes its rapid growth to its model of combining digital channels with in-store kiosks at major retailers such as Pick n Pay, Boxer and The Foschini Group (TFG). It also has a partnership with the Zion Christian Church (ZCC), which has an estimated 12 million churchgoers.
TymeBank touts its ability to open a bank account in under five minutes; a fixed deposit savings rate of 11%; the launch of interest-free social grant advances and healthcare insurance (TymeHealth) as being among the reasons for its success.
The bank also finalised its acquisition of SME-focused lender Retail Capital at the end of 2022, which essentially acts as its business banking arm and is now financing more than 50 000 small businesses with R9.5 billion of working capital across the country.
READ | TymeBank rolls out medical insurance aimed at domestic workers
"We believe that we are now perfectly aligned with our goal of becoming one of the top three retail banks in the country," said Jonker. "This ambitious target is our next measurable benchmark for success, one that will require strategic focus across all areas of our business."
