TymeBank - Afrikan Heroes

South Africa’s TymeBank Sets a New Standard as Africa’s First Profitable Digital Bank

January 16, 2024

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.

South Africa’s TymeBank Completes Acquisition Of Lending Startup Retail Capital

November 1, 2022

TymeBank’s acquisition of Retail Capital has been authorised unconditionally by the South Africa Competition Tribunal.

TymeBank provides personal and commercial transactional accounts, savings accounts, and value-added services such as credit cards, prepaid, health insurance services, and burial coverage, according to the company.

Retail Capital is a fintech company that offers unsecured lending to small and medium-sized businesses as well as asset financing.

TymeBank will have sole control of Retail Capital following the transaction.

TymeBank said in August that it planned to acquire Retail Capital in order to expand its commercial banking offerings.

Retail Capital will become a TymeBank division and the backbone of the company’s expanded business banking services.

“This acquisition will enable TymeBank to expand its offering to entrepreneurs to include working capital finance,” said TymeBank CEO Coen Jonker. “Retail Capital has acquired significant risk management experience over the past decade and through different economic cycles. They have an experienced team in place and their risk models and operational processes have been battle-tested and optimised to a significant degree for small-business funding.”

Egyptian Fintech Startup Money Fellows Raises $31M In Series B Funding Round

Charles Rapulu Udoh

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. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh

Tencent, CDC, Invests in $ 180 Million in South Africa’s Tyme Bank

December 8, 2021

China based Tencent, a globally leading internet and technology company, and United Kingdom based development finance institution and impact investor, have invested to the tune of $180 million into South African based Tyme, one of the fastest-growing digital banking groups in a Series B capital raise.

The investments from Tencent and CDC are pegged at an additional $70 million. Tyme, which has its roots in South Africa, is using the US$180 million it has raised to fund and grow TymeBank in South Africa and to fund GOTyme in the Philippines, where it has secured a digital bank licence in partnership with the leading Filipino conglomerate, Gokongwei Group, with the possibility of further international expansion.

The first part of Tyme’s Series B raise concluded earlier this year when it secured $110 million from Apis Growth Fund II, a private equity fund managed by Apis Partners LLP, and Gokongwei’s JG Summit Holdings (JG Summit).

The investments will enable Tyme to use its digital infrastructure to accelerate the rollout of financial services to TymeBank’s mass-market customer base. The two investor’s capital and expertise will also be used to improve Tyme’s ability to manage risk and support Tyme’s expansion into markets where CDC has a presence.

CDC’s investment in Tyme in South Africa is part of its strategy to support businesses that provide vital infrastructure, such as digital financial services, to traditionally underserved groups. African Rainbow Capital remains Tyme’s majority shareholder.

Coen Jonker, co-founder of Tyme commented: “This is a very welcome investment from Tencent and CDC. It is a clear vote of confidence in our digital banking offering as well as our leadership teams in South Africa, Singapore, and the Philippines”

“Tyme’s global footprint now includes a product development and engineering hub in Ho Chi Minh city, Vietnam and banking businesses in South Africa and the Philippines. We have successfully attracted a team of skilled people, which includes over two hundred engineers, and established strategy, business development, data, analytics and Artificial Intelligence (AI) functions in our global headquarters in Singapore.”

The investment by Tencent and CDC represents a strong endorsement for both TymeBank – as one of the world’s fastest-growing digital banks – and for South Africa’s banking sector overall. TymeBank is fully regulated and held to the same standards of safety and security as all other banks in South Africa. TymeBank is the first bank in South Africa to be operated fully off a cloud-based infrastructure network. It was also the first bank to be granted a commercial banking licence since 1999.

Commenting on the transaction, TymeBank CEO Tauriq Keraan said: “This is a momentous event for TymeBank. We look forward to continuing to demonstrate our strong strategic and execution capabilities to all our investors and to benefit from the deep global expertise that Tencent and CDC have accumulated through a multitude of investments in digital businesses. We are equally excited about the opportunity to pursue the synergies that exist between all investors and partners, ultimately to ensure added value for our customers.”

Dr Patrice Motsepe, Founder and Chairman of African Rainbow Capital, which is the majority shareholder of Tyme, said: “We are delighted to welcome Tencent and CDC as our new co-investors in Tyme. The ability to attract investors of this calibre is a testament to the global competitiveness of Tyme’s value proposition, and its management. The success of TymeBank in South Africa is an example of our innovation in financial services, and this is evidenced in our business model. We look forward to a long and successful relationship with Tencent and CDC.”

The finalisation of the investments is subject to conditions precedent and regulatory approvals.

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

South African Digital Bank, TymeBank, Raises Additional $70m Series B Round Led By Tencent

December 7, 2021

TymeBank, one of the world’s fastest growing digital banking companies, has completed its US$180 million Series B capital raising with investments from Tencent and CDC. Tencent and CDC are expected to invest an extra US$70 million. The investment from Tencent and CDC is pegged at an additional US$70 million.

“This is a momentous event for TymeBank. We look forward to continuing to demonstrate our strong strategic and execution capabilities to all our investors and to benefit from the deep global expertise that Tencent and CDC have accumulated through a multitude of investments in digital businesses. We are equally excited about the opportunity to pursue the synergies that exist between all our investors and partners, ultimately to ensure added value for our customers,” TymeBank CEO Tauriq Keraan said.

Tyme raised US$110 million from Apis Growth Fund II, a private equity fund managed by Apis Partners LLP, and Gokongwei’s JG Summit Holdings (JG Summit) in the first half of its Series B round earlier this year.

Tyme will be able to use its digital infrastructure to speed up the delivery of financial services to TymeBank’s historic mass market client base as a result of the investments. Tyme’s ability to manage risk will be improved, and the two investors’ resources and experience will be used to help Tyme’s expansion into markets where CDC has a presence.

The company, which has its roots in South Africa, will also use the US$180 million raised to fund and grow TymeBank in that country, as well as GOTyme in the Philippines, where it has secured a digital bank license in partnership with the Gokongwei Group, the Philippines’ largest conglomerate, with the possibility of further international expansion.

TymeBank digital bank — *TymeBank CEO, Tauriq Keraan. Credits: TymeBank*

Why The Investors Invested

The investment by Tencent and CDC represents a strong endorsement for both TymeBank — as one of the world’s fastest growing digital banks — and for South Africa’s banking sector overall.

The CDC’s investment in Tyme in South Africa is part of its aim to encourage enterprises that deliver critical infrastructure to previously underrepresented communities, such as digital financial services. Tyme’s majority stakeholder is still African Rainbow Capital. TymeBank, one of the world’s fastest-growing digital banks, has accumulated four million customers in 32 months, indicating a significant increase in its acquisition rate.

“This is a very welcome investment from Tencent and CDC. It is a clear vote of confidence in our digital banking offering as well as our leadership teams in South Africa, Singapore, and the Philippines. Tyme’s global footprint now includes a product development and engineering hub in Ho Chi Minh city, Vietnam and banking businesses in South Africa and the Philippines. We have successfully attracted a team of skilled people, which includes over two hundred engineers, and established strategy, business development, data, analytics and Artificial Intelligence (AI) functions in our global headquarters in Singapore,” Mr Coen Jonker, co-founder of Tyme said.

Dr Patrice Motsepe, Chairman of African Rainbow Capital, majority shareholder of Tyme, said:

“We are delighted to welcome Tencent and CDC as our new co-investors in Tyme. The ability to attract investors of this calibre is a testament to the strength of Tyme’s value proposition, and its management. The success of TymeBank in South Africa is an example of the innovation of Tyme’s financial services offering as evidenced in our business model. We look forward to a long, successful relationship with Tencent and CDC.”

Tencent is a Chinese internet and technology giant, while CDC Group is a development finance organization and impact investor in the United Kingdom.

A Look At What Tyme Does

Launched in 2019 by founders Coen Jonker, Rolf Eichweber, Tjaart van der Waalt, TymeBank is South Africa’s first digital bank.

South Africans from all walks of life can now bank thanks to a hybrid model that combines digital and physical services. It has long-standing relationships with national shops Pick n Pay and Boxer, as well as South Africa’s largest church, the Zion Christian Church. It also recently teamed with TFG, The Foschini Group, a leading fashion retailer, to expand its customer base into higher income sectors and create a feasible path to responsible consumer lending (subject to regulatory clearances where appropriate).

TymeBank has continued to diversify its product offering, most recently launching MoreTyme, a buy-now, pay-later product; a number of value-added services, such as the opportunity for customers to get paid a day early; and numerous off-balance sheet goods, such as insurance. Throughout its expansion, it has maintained high levels of client satisfaction as well as price and savings rate competition.

The majority of new TymeBank accounts are formed at kiosks; nevertheless, the bank has seen a significant growth in accounts opened online, as well as a gradual transition from cash deposits to electronic transfers. It now has R2.8 billion in deposit balances from consumers and sole proprietors, and has received R33 billion in total deposits from the general public since the outbreak in March 2020.

TymeBank is completely regulated and held to the same safety and security requirements as all other South African banks. TymeBank is South Africa’s first bank to run entirely on a cloud-based infrastructure network. It was also the first commercial bank to be given a license since 1999.

In August of this year, GOTyme was awarded one of six digital banking licenses in the Philippines. Tyme’s approach is to include banking into people’s daily life, making it a seamless element of shopping and commercial transactions.

This is especially essential in a country where over 70% of the population is unbanked. Tyme is on schedule to launch in the third quarter of 2022, with construction currently ongoing in the Philippines. It intends to take use of its connection with JG Summit as well as its retail environment. The investments are subject to antecedent conditions and regulatory clearances, which are standard for transactions of this sort.

TymeBank digital bank TymeBank digital bank

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

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

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

A Month After Investing In TymeBank, Apis Partners Quits African Payments Company Tutuka Holdings

April 4, 2021

Private equity fund manager Apis Partners has sold all of the shares it indirectly held in South Africa’s Tutuka Holdings, a payments aggregator active in Africa. Its shares (62.6%) which it owned through its investment fund Apis Growth Fund II were sold for an undisclosed amount to SaltPay, a payment solutions provider focused on European SMEs.

*Udayan Goyal, Partner and Co-Founder of Apis Partners*

“We are delighted that SaltPay has identified Tutuka as an asset to its own business as it seeks to provide an end-to-end solution to its customers around the world. Adding this essential component to the SaltPay product offering will bring significant benefits to all of its stakeholders, ”commented Udayan Goyal, Partner and Co-Founder of Apis Partners.

Here Is What You Need To Know

Apis, which is withdrawing from Tutuka after 2 years of investment, claims to have contributed to the growth of this physical and virtual payment card issuing company, which operates in 33 emerging countries.

The fund manager says he has enabled Tutuka to develop its international presence and especially to strengthen its clientele.

It was in September 2019 that Apis Partners joined Tutuka’s funding round by buying back the shares of Paycorp.

The manager had thus offered himself a majority stake in the capital of this company which counts among its customers, the South African telecoms operator MTN.

At that time, Apis was motivated by the mobile ecosystem which, according to its estimates, should grow by more than 45% per year until 2021.

The company recently led a $110m round in South African digital bank TymeBank, alongside JG Summit, one of the largest and most diversified Filipino conglomerates.

A Look At What Apis Partners Does

The firm supports growth stage financial services and financial infrastructure businesses in Africa and Asia by providing them with growth equity capital. A majority of the firm’s portfolio companies are mainly fintech companies which are based in South Africa, Kenya, India, Malaysia, Singapore and other parts of Asia. In 2020, one of its portfolio companies, Kenya’s DPO Group, a leading, high-growth online commerce platform in Africa operating across 19 countries, was acquired by Network International, a leading enabler of digital commerce across the Middle East and Africa (MEA). The deal was a landmark for the African payments space.

“Apis focuses on driving financial services, with the help of innovation and technology, as a cornerstone of building better lives for people across the world. This was the key driver that pushed us to start Apis,” said Apis Partners founders Matteo Stefanel and Udayan Goyal.
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

Apis Partners Tutuka Apis Partners Tutuka

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

April 3, 2021

Barely two years since it was launched in February 2019, South Africa’s TymeBank is ready for fierce competition with traditional banks. The country’s first digital bank has announced it had recently surpassed the 3 million customer mark, onboarding between 100,000 and 120,000 new customers per month.

“Financial institutions need to be responsive to consumer preferences. Banking customers are sensitive to costs impacting adversely on their financial health, particularly in these tough times. They also want to know exactly what they’re paying for and TymeBank’s simple, transparent, affordable banking offering is giving our 3 million customers what they want and need,” says CEO Tauriq Keeran regarding the recent milestone.

“With our focus on lower transaction costs and giving value to our customers, we can proudly say that we have enabled 100 million free transactions to date, which is timely given the current climate. This, plus the fact that we have never asked a customer to complete any paperwork, saves our customers money and makes their banking experience quick and convenient, right from the start,” he adds.

From odd jobs to CEO of digital bank — *Tauriq Keeran is the CEO of TymeBank. Source: TymeBank*

Here Is What You Need To Know

According to TymeBank, although the pace at which a customer can sign up is part of its fast onboarding process, the digital bank also attributes its huge adoption to the fact that it has no monthly banking fees and transaction costs that are 30 to 50 percent lower than those charged by other institutions.

With a customer base of more than 3 million acquired within a space of two years, TymeBank’s massive adoption rate in South Africa is unprecedented. As at June 2018, South African bank Capitec with 10.2 million customers topped the country’s entire banking industry in terms of number of active customers. This was followed by FNB at 8.15 million and the country’s largest bank by assets, Standard Bank at 8.12 million (this is despite the fact that Standard Bank, for instance, has been in existence since 1862).

The bank recently raised $110m from private equity fund Apis Partners, with participation from JG Summit.

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.

Essentially, below are what the TymeBank product is bringing to the table:

The Bank Is Relying On Partnership As Its Strength Both For Money Deposit Or Withdrawal

TymeBank has created a network of partners including Pick n Pay and Boxer, with the former’s Smart Shopper program now fully embedded into TymeBank’s technology stack.

“We’ve partnered with companies whose business ethos aligns with what we want to do in the market, which is to do good. The customer will always be at the centre of our banking practices and going forward we will be doing some really exciting things with our partners, it will go way beyond just occupying floor space,” said Sandile Shabalala, TymeBank’s CEO who resigned in June, 2019.

The implication of joining forces with Pick n Pay and Boxer stores is that TymeBank now has access to a relatively significant distribution edge.

South Africa’s data-only mobile network Rain had also entered into a partnership deal with Tymebank to test the distribution of its SIM cards at Tyme kiosks, making it easier for its clients to sign up for a new service.

TymeBank’s Strategy Is Also To Make It Simple and Cheap For Customers

Indeed, signing up to the digital bank could cost little or nothing. No documents are required and no charges demanded.

To open an account, you need a South African ID number and a South African cellphone number, which the bank verifies through several questions and a One-Time PIN (OTP).

If the process is done at a kiosk, biometric data will be captured and compared to the data with Home Affairs, which is connected to the Tyme systems, and a free Visa debit card is issued immediately.

If done online, you will have access to your account, but it will be limited in how much you can transact until you go to a kiosk and “upgrade” your account (for free) to a full account through capturing biometric data and registering your residential address.

Getting a debit card is free and immediately.

Service Fee for new registration is free. There is no monthly account or withdrawal at Pick n Pay and Boxer stores, only R2 at other major retailers.

By July 2019, Customers Could Borrow From TymeBank Without Collateral

The digital bank also started piloting its unsecured term lending in July, 2019 and a credit card in partnership with consumer lending company RCS later in 2019. However, the Covid-19 pandemic and associated lockdowns put paid to the bank’s original plan to launch a standard unsecured lending product to customers in 2020

Instead, it has recently launched MoreTyme, a product which offers “interest-free shopping”, with customers paying half the price at the till point of partner retailers and the rest in two equal instalments over two months.

Up Next

TymeBank seems to be moving forward with its process by introducing new items to its existing portfolio.

“While our technology allows for exponential customer growth, our priority is to broaden our offering to include innovative credit and insurance products plus a variety of value-added services. We want to continue broadening access to banking for the benefit of the country’s consumers,” concludes Keraan.
Read also:Mauritius Sets Up Committee To Clear Way For Fintech Startups

The company’s recent growth has been remarkable, but with larger financial institutions pushing digital agendas as well, it will be important to see how long TymeBank will keep up this pace.

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

TymeBank customers TymeBank customers TymeBank customers