Tauriq Keraan - Afrikan Heroes

3-year-old South African Digital Bank, TymeBank, Surpasses 4m Customer Mark

November 8, 2021

TymeBank, a three-year-old retail digital bank, has surpassed the four million customer threshold, marking a significant milestone for the company.

The bank claims that its client acquisition rate is increasing, with 140 000 new customers onboarded weekly, up from roughly 110 000 previously.

TymeBank, which is majority-owned by African Rainbow Capital, Dr Patrice Motsepe’s empowerment investment firm, says the increase in customer sign-ups is due to its offerings and cost transparency.

“We are pleased to have achieved a four million customer base within about 32 months. We’ve expanded our offering and enhanced product functionality to ensure we can give customers everything they need in a single banking account, while empowering them to pay nothing — or next to nothing — on banking fees, depending on their banking behaviour. The acceleration in customer growth tells us we’re on the right track,” says TymeBank CEO Tauriq Keraan.

“TymeBank’s hybrid model of digital banking and physical service points is what sets us apart, which is why more than 80% of accounts are opened at our instore kiosks. That said, we’re seeing more customers making use of our digital channels, which is in line with the rapid growth in digital adoption among ordinary South Africans, largely driven by the COVID-19 pandemic, as well as increasing trust and confidence in digital banking.”

TymeBank has recently embarked on an aggressive expansion strategy, which includes raising new cash and signing various agreements with retailers.
It formed relationships with Pick n Pay and Boxer, and claims that these alliances have helped it attract clients and increase usage.
The bank inked a contract with TFG (The Foschini Group) last month, aiming to reach the fashion retailer’s 26 million clients.

TymeBank established a collaboration with the Zion Christian Church in February 2020, giving it the possibility to sign up members of the congregation’s 12 million members.

“As TymeBank management, we are proud of what the bank has achieved in the last 32 months. We have four million customers, strategic partnerships with three South African retail giants, as well as the Zion Christian Church, and have attracted significant investments from major international investors. We’re poised for further growth and there’s an exciting future ahead,” Keraan said.

A Look At What TymeBank Does

Launched in 2019 by founders Coen Jonker, Rolf Eichweber, Tjaart van der Waalt, TymeBank is South Africa’s first digital bank. In February 2019, the bank launched its EveryDay transactional account bundled with a savings tool called GoalSave, its MoneyTransfer solution, and its TymeCoach App, which gives consumers free access to their credit report, supported by tips on how to make better decisions about the money.

*This image was accurate till the year 2019. Since then, TymeBank has created a digital lending product.*

Since its formal launch in 2019, TymeBank has seen a tremendous increase in customers and has reinforced its position locally to better compete with digital-only competitors Discovery Bank and Bank Zero.

digital bank TymeBank customer digital bank TymeBank customer

Over 3 million Customers In Two Years: What Is South Africa’s Digital Bank, TymeBank, Doing Differently?

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning write

The New Deal That Could Fetch South African Digital Bank, TymeBank, 26m New Users

October 11, 2021

TymeBank, a South African digital bank, has partnered with The Foschini Group (TFG) to target the retailer’s 26 million consumers in the country.
The agreement will enable the development of a wide range of financial goods and services, including a wider range of insurance and term loan products.

“TFG houses some of South Africa’s most popular and well-established consumer brands and is renowned for its retail strength and strong customer focus. We couldn’t be more excited with our strategic partnership, as we look to expand our reach,” says TymeBank CEO Tauriq Keraan.

“Furthermore, we are likely to diversify the current TymeBank customer profile, as we further extend the benefits of affordable banking, as well as a superior banking experience to the middle and upper-middle market segments.”

Here Is What You Need To Know

Over 600 TFG- and TymeBank-branded kiosks will be installed in TFG stores as part of the agreement, allowing clients to have direct and convenient access to affordable transactional banking, according to the bank.

TFG customers will be able to access services like as electricity payments, money transfers, and savings products through the kiosks, the TymeBank app, and other digital interfaces.

The collaboration is part of the bank’s strategy to work with shops to attract new customers and increase usage.

The digital-only bank announced in March that it had hit the three million user milestone, as it boosted its kiosks at Pick & Pay and Boxer stores across South Africa to 700.

TymeBank now has a member base of slightly over 3.8 million, with an average of 110 000 new users joining each month.

“We are truly excited about this partnership with TymeBank, as they are recognised as one of the fastest-growing digital banks globally. The bank has deep expertise in managing a digital ecosystem platform plus related products and services, and I believe TFG’s customers will benefit from an enhanced shopping experience,” TFG CEO Anthony Thunström said.
Read also Nedbank Partners Microsoft to Launch Free Online Digital Skills Training Platform

A Look At What TymeBank Does

Launched in 2019 by founders Coen Jonker, Rolf Eichweber, Tjaart van der Waalt, TymeBank is South Africa’s first digital bank. In February 2019, the bank launched its EveryDay transactional account bundled with a savings tool called GoalSave, its MoneyTransfer solution, and its TymeCoach App, which gives consumers free access to their credit report, supported by tips on how to make better decisions about the money.

Since its formal launch in 2019, TymeBank has seen a tremendous increase in customers and has reinforced its position locally to better compete with digital-only competitors Discovery Bank and Bank Zero.

Over 3 million Customers In Two Years: What Is South Africa’s Digital Bank, TymeBank, Doing Differently?

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

South African Digital Bank, TymeBank, Expands To The Philippines, Records 3.5m Customers In 2 Years

August 19, 2021

Everything looks to be going well for TymeBank, South Africa’s digital bank, which has announced that it is expanding its operations to the Philippines through its newly-established sister firm GOtyme.

TymeBank’s high-tech banking concept and technology will enable GOtyme, which recently got its digital banking license from the Philippines Central Bank, to deliver banking simplicity and financial empowerment to Filipino citizens.

“We are proud of TymeBank’s South African roots, and we look forward to sharing our knowledge with our international partners at GOtyme in the Philippines and replicating TymeBank’s success on the global stage,” said Dr Patrice Motsepe, chairman of African Rainbow Capital, the majority owner of TymeBank.

“The approval to apply for an international banking licence represents an important milestone in our plans to expand and grow over time into select emerging markets.”
Read also:Backed By FMO, Fintech Startup Dopay Joins Telda, Obtains Egypt’s Latest Banking Agent License

Here Is What You Need To Know

TymeBank began looking into foreign potential in February this year after raising R1.6 billion from investors in the United Kingdom and the Philippines.

Apis Growth Firm II, a private equity fund managed by London-based Apis Partners, and JG Summit Holdings, one of the Philippines’ major investment conglomerates and owned by the Gokongwei family, were among the investors.

TymeBank intended to use the funds to increase its variety of banking products, extend its lending portfolio domestically, and fund the bank’s offshore expansion plans.

The bank has now announced that it will create a new digital bank in the Philippines in collaboration with the Gokongwei family.

At the end of July, TymeBank had 3.5 million customers in South Africa.
JG Summit Holdings’ president and CEO, Lance Gokongwei, intends to repeat the company’s success in the Philippines.

“Together with our South African partners, GOtyme will bring about opportunities for improved financial inclusion for Filipinos. We see our model of digital banking, with onboarding and education in retail networks and a well-designed app for transacting, as the best way to provide greater financial empowerment to our customers,” Motsepe said.

Commenting on the development, TymeBank CEO Tauriq Keraan said:

“TymeBank’s rapid growth and high customer satisfaction scores have made us the benchmark as our international sister company Tyme begins to expand its footprint into other emerging markets to the benefit of consumers who require simple, digital banking.
Read also: SMS Solutions Could Be Essential for an Inclusive Business Strategy

“TymeBank is a proudly South African success story, and we look forward to sharing our experience and the expertise we have acquired over the last two-and-a-half years with our partners at GOtyme for the benefit of Filipino consumers.”

A Look At What TymeBank Does

Launched in 2019 by founders Coen Jonker, Rolf Eichweber, Tjaart van der Waalt, TymeBank is South Africa’s first digital bank. In February 2019, the bank launched its EveryDay transactional account bundled with a savings tool called GoalSave, its MoneyTransfer solution, and its TymeCoach App, which gives consumers free access to their credit report, supported by tips on how to make better decisions about the money.

Since its formal launch in 2019, TymeBank has seen a tremendous increase in customers and has reinforced its position locally to better compete with digital-only competitors Discovery Bank and Bank Zero.

Over 3 million Customers In Two Years: What Is South Africa’s Digital Bank, TymeBank, Doing Differently?

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

What makes a digital bank – Tauriq Keraan

August 3, 2021

There is a frequent misconception in discussions around digital banks, namely that digital banks and traditional banks differ only at the surface. Digital banks, the misconception goes, are simply traditional banks that focus on apps instead of branches and try to reduce costs by prioritising slick interfaces over bricks and mortar.

Tauriq Keraan is the CEO of TymeBank — **Tauriq Keraan, CEO of TymeBank**

But this is a misunderstanding of what digital banks are, and the degree to which they are distinguishable from traditional banks. Digital banking is not about driving customer interaction on digital channels. It is about the benefits that arise when a bank is premised entirely around a modern digital core.

Digital banks are typically built on a cloud-based tech stack (the “tech stack” is what we call our underlying data infrastructure). This is our advantage; this is what allows us to reduce our costs and provide customers with a better banking experience and greater value for money. We’re not just unencumbered by branches; we’re free from legacy server rooms, decades of inefficient, patched-together systems and services, and forced reliance on outdated technology that results in a disjointed customer experience, disparate data and poor “Jaws ratios”.

A bank built on a purely digital technology stack is exponentially better at certain things than traditional banks

A bank built on a purely digital technology stack is exponentially better at certain things than traditional banks. A modern digital bank’s tech stack is purpose-built, secure, free of legacy inefficiencies and blockages, agile, and responsive. It is a platform with vast potential.

The tech stack allows us to fix issues rapidly and at source, not through inefficient workarounds and patches. It allows for the implementation of robotic automation and artificial intelligence to streamline and accelerate process efficiency. It allows for the real-time, advanced analysis of astonishing amounts of data. And it provides an exceptional view of our customers to enable advanced risk assessment, improved customer experiences, and real-time fraud and money-laundering prevention.

Open systems

It also allows a radical reshaping of the extent to which digital banks can collaborate with other companies. In an era of open systems, proprietary architectural control is outdated. It limits your ability to grow and adapt. The open-service architecture of a modern tech stack allows digitals banks to collaborate with third parties at fast pace and minimal additional cost. Open systems allow for a continuously expanding product portfolio without compromising the efficiency and agility of the central stack or overburdening the balance sheet. They allow digital banks access to a much vaster market for innovative products, with minimal time to incorporate them.

And it is these benefits – not a focus on apps – that are driving the stunning success of digital banks worldwide. Take Brazil’s Nubank, which tripled its customer base from 12 million to more than 34 million in three years. Or Russia’s Tinkoff, which in 2020 produced a return on equity of 40% and a Jaws ratio of 10% over the last 10 years (compared to -2% to 1% for South Africa’s big retail banks over the last four years), meaning that its income grew 16-fold while its costs grew only six-fold over that period. This is the promise of digital banks: Once they outcompete old banks, they have the potential for exponential returns.

The app is merely the visible wrapper overlaying this sleek, efficient and ultra-low-cost core. The decisions we make around the specifics of customer interaction are secondary. TymeBank, for example, has chosen to adopt a hybrid model of physical onboarding points, which makes sense in the South African market. Through our partnership with Pick n Pay and Boxer, we take advantage of the ubiquity of retail points to allow our customers to sign up for accounts and obtain live debit cards in under five minutes without any paperwork. This hybrid model allows us to have onboarding and cash-handling footprints that rival the traditional branch-based bank’s footprints from day one, at a fraction of the cost. But this hybrid model is not our raison d’etre, simply one of the possibilities that our digital core allows.

Banks are aggressively moving their clients to digital channels

Traditional banks that happen to be branchless – some private and corporate banks for example – are a different category. Their costs grow in tandem with growth in revenue because these models require a high-touch approach on the front end with customers. While they might drive engagement away from staff towards digital channels, they still rely on middle offices and back offices involving manual processes. They don’t have the tech and data stacks that allow for continuous automation, pruning, fixing at source and quick responses to customers’ needs.

It is the agility of digital banks that ultimately allows us to compete head-to-head with the large old banks. As digital banks, we’re able to run scale retail operations at a cost base that is significantly lower than those of the large incumbent banks. Once digital banks break even, they are able to produce exponential growth in profits. But an even greater advantage of our agility is the way in which we can build a bank around the customer experience, and with the agility and flexibility required to live up to customer expectations.

We encourage debate around digital banks. We think they’re worth talking about. But a narrow focus on the savings incurred through reducing rental property and staff headcounts obscures the fundamental and lasting ways in which they’re reshaping financial services.

Tauriq Keraan is the CEO of TymeBank

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry