TymeBank turns first-ever monthly profit, less than five years after launch | Business
TymeBank, backed by billionaire Patrice Motsepe’s African Rainbow Capital (ARC), has achieved its first month of profitability in December 2023, marking a significant milestone in its journey since its launch in February 2019. This achievement positions TymeBank as the first digital bank on the African continent to break even. With approximately 8.5 million customers in South Africa, TymeBank now sets its sights on becoming one of the top three retail banks in the country.
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.
TymeBank attributes its rapid growth to its unique approach of combining digital channels with in-store kiosks located at major retailers, including Pick n Pay, Boxer, and The Foschini Group (TFG). Additionally, the bank’s partnership with the Zion Christian Church (ZCC), which boasts an estimated 12 million churchgoers, has been instrumental in its expansion.
Several factors have contributed to TymeBank’s success. The bank prides itself on its quick and convenient account opening process, which takes less than five minutes. It also offers a competitive fixed deposit savings rate of 11%, appealing to customers seeking attractive returns on their savings. TymeBank has further expanded its services by introducing interest-free social grant advances and healthcare insurance through TymeHealth.
In a strategic move, TymeBank finalized its acquisition of Retail Capital, a lender specializing in small and medium-sized enterprises (SMEs), at the end of 2022. This acquisition positions Retail Capital as TymeBank’s business banking arm, enabling the bank to provide working capital amounting to R9.5 billion to over 50,000 small businesses across the country.
We believe that we are now perfectly aligned with our goal of becoming one of the top three retail banks in the country, stated Jonker. This ambitious target is our next measurable benchmark for success, one that will require strategic focus across all areas of our business.
With its commitment to innovation and customer-centric services, TymeBank aims to solidify its position in the South African banking industry. As the first digital bank in Africa to achieve profitability, TymeBank sets an inspiring example for other players in the market. Through its continued growth and expansion, TymeBank aims to transform the banking landscape and provide accessible, efficient, and customer-friendly financial services to individuals and businesses alike.
