In a groundbreaking achievement, TymeBank, the world’s rapidly growing digital bank, declared its first month of profitability in December 2023, less than five years since its inception in February 2019. This milestone not only establishes TymeBank as the first digital bank to break even in South Africa but also marks a significant feat for the entire African continent.
Coenraad Jonker, the CEO of TymeBank, expressed pride in the achievement, highlighting the rarity of profitability in the digital banking sector. “Globally, less than half of the top 100 digital banks are profitable, and less than 5% of all neobanks worldwide have reached profitability,” he stated. Most notably, TymeBank achieved this milestone in a remarkably shorter timeframe than its counterparts, such as Latin America’s Nubank and London-based Monzo.
TymeBank, owned by billionaire Patrice Motsepe, has rapidly gained prominence since its launch, attracting more than 8.5 million customers. The bank’s unique model, which combines digital channels with in-store kiosks at major retailers, has been a key factor in consistently acquiring approximately 150,000 customers each month.
Jonker attributed the success to strategic relationships with major retailers such as Pick n Pay, Boxer, The Foschini Group (TFG), and the Zion Christian Church (ZCC). Additionally, TymeBank’s lending portfolio experienced rapid ~30% year-on-year growth, with the Merchant Cash Advance program now supporting over 50,000 SMEs across the country.
The bank’s success is further attributed to the confidence of its shareholders, as evidenced by the Tyme Group’s successful capital raise last year despite economic challenges. TymeBank has continuously innovated, introducing several firsts in the South African banking landscape, including the most affordable banking offering, a swift account opening process, an 11% fixed deposit savings rate, interest-free Grant Advance for social grant recipients, healthcare insurance (TymeHealth), and the buy-now-pay-later product, MoreTyme.
Looking ahead, Jonker expressed excitement about the future, stating, “We believe that we are now perfectly aligned with our goal of becoming one of the top three retail banks in the country.” The bank’s chairperson, Thabani Jali, extended congratulations to the TymeBank team and emphasized the commitment to building a sustainable future.
TymeBank distinguishes itself by offering no monthly banking fees, and in most cases, transaction costs are 30 to 50% lower than those at other banks. Dr. Patrice Motsepe, Founder and Chairman of major shareholder African Rainbow Capital (ARC), acknowledged TymeBank’s achievement after more than four years of dedication and strategic investments, noting its continued disruption and transformation of the banking sector.
The landmark achievement positions TymeBank as a beacon of success and innovation in the digital banking landscape, with a bright future ahead as it aims to appeal to an even broader audience.
TymeBank profitable TymeBank profitable
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.