Tag: TymeBank

TymeBank surpasses the 3m customer mark

Source: ITWeb

TymeBank has reached the three-million customer milestone, as the digital-only bank increases its kiosks at Pick n Pay and Boxer stores across SA to 700.

Having launched in February 2019, TymeBank bills itself as one of the world’s fastest-growing digital banks across the globe, on-boarding between 100 000 and 120 000 customers each month – between 3 000 and 5 000 new customers every day.

TymeBank is majority owned by Dr Patrice Motsepe’s African Rainbow Capital with UK-based Apis Growth Fund II, a fintech private equity fund based in the UK; JG Summit Holdings, a Philippines-based conglomerate owned by the Gokongwei family; and the Ethos AI Fund.

The branchless bank attributes its milestone to its core banking technology platform, hosted securely in the cloud, as well as its no monthly banking fees model and lower transaction fees.

TymeBank CEO Tauriq Keraan comments: “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 three million customers what they want and need.

“Over the last year, we have added an average of four new features monthly to our customer interfaces, including extending our app availability, upgrading our Web site and enabling e-commerce locally and internationally to cater for customer behaviour during COVID-19.”

TymeBank’s partnership with Pick n Pay and Boxer allows consumers to sign up at the kiosks fitted inside their stores, and make deposits or withdraw money at any of the over 14 000 Pick n Pay and Boxer till points across the country.

According to the bank, the majority of accounts to date (85%) have been opened at kiosks, while 15% were opened online. Customers have also deposited more than R10 billion into their TymeBank accounts in the past six months, it notes.

In February, TymeBank secured R1.6 billion in funding from Apis Growth Fund II and JG Summit Holdings, which it said would be used to expand the bank’s range of banking products, grow its lending portfolio locally, and channelled towards funding offshore expansion opportunities.

The bank says it is looking to introduce new credit offerings and insurance products in the near future.

The lending portfolio will entail a credit facility, among other loan solutions, which will allow customers to ‘buy now and pay later’ for goods – enabled by the bank’s future partnerships with merchants across the country.

The credit facility, according to the bank, will be based on a TymeBank credit card, which will provide customers with access to SA’s shopping network, built on the bank’s partnership with third-parties.

The bank is also looking at expanding its insurance offerings after signing a bancassurance deal with Hollard last year, to offer customers funeral policy plans without any paperwork.

 

TymeBank enrolls 110-120k new customers each month

By Samuel Mungadze for ITWeb

African Rainbow Capital (ARC) injected R750-million in TymeBank in the last financial year ended June, a tough period for the relatively new digital bank, which saw it experience a drop in footfall to its kiosks under national lockdown.

Announcing its year-end results today, ARC says the bank onboarded 1.9 million customers, during the period under review, which was ahead of business plans.

The Patrice Motsepe-controlled ARC owns 70% of TymeBank equity.

The company says TymeBank is one entity in the ARC Investments portfolio that experienced some initial difficulty due to the COVID-19 lockdown.

“TymeBank experienced a drop in footfall to its kiosks located inside Pick n Pay stores in March and April under national lockdown levels five and four. With the easing of the lockdown regulations, the bank managed to increase its customer onboarding rate to pre-lockdown levels. As before, it now enrols about 110 000 to 120 000 new customers each month,” says ARC.

It adds that TymeBank is now signing up between 3 000 and 3 500 customers per day, with about half of the customers actively using their bank accounts.

“TymeBank is well-positioned within the SA banking sector to implement its unique low-cost banking fee model,” it says.

TymeBank is one of the new digital banks that launched to challenge the incumbents.

In July, the bank revealed it had introduced a fast mode of transaction, SendMoney, which allows users to send and receive money through their electronic gadgets, as a way of adding value for its clients.

TymeBank clients can now send cash to anyone with a valid South African cellphone number and the recipient will receive it immediately.

The service costs R4 per transaction when the recipient opts to cash the money out using the voucher, which it claims is one of the lowest rates in the industry, and is free when the recipient has a TymeBank account.

Commenting on the overall ARC performance during the period, Johan van der Merwe, co-chief executive officer of ARC, says: “Our performance in the period under review was first impacted by the poor trading environment as a result of a pedestrian economy.

“Subsequently, with the onset of the COVID-19 pandemic, the challenging operating environment was exacerbated. Interestingly, some of our investments experienced a significant acceleration in business activity, while others experienced a marked slowdown.

“In this instance, we have clearly benefited from a diversified pool of investments in our portfolio. This has helped us to perform satisfactorily on a relative basis to our peers, as well as other listed investment holding companies. On an absolute basis, we missed our key performance metric as a result of a poor trading environment. We are certainly not pleased with this performance.”

Notwithstanding the setback with TymeBank, ARC’s telecommunications business Rain benefitted from the COVID-19-induced lockdown.

The data-only network saw a sharp increase in its subscriber customer base as a result of people wanting access to cost-effective data, says ARC.

It says the Rain 4G rollout has also progressed well, with 5 500 active sites live as at the end of April.

The ARC Fund’s investment in Rain also increased from R2.5 billion at 30 June 2019 to R3.11 billion at 30 June 2020,which the company says was mainly as a result of a fair value write-up of R479 million.

“The business experienced a surge in subscriber numbers during the national lockdown period as people were required to work from home. Economic and social activities have increasingly moved online, including schooling, entertainment and connecting with family and friends,” says ARC.

“Going forward, we expect the difficult trading environment to persist over the short- to medium-term,” says Van der Merwe. “The impact of COVID-19 on our economy has been widely reported, with the economy now in a contracting phase. This does not bode well for many companies, including companies in which we have invested.

“As a result, we have already made plans with the management teams of key companies in our portfolio to see how we can align the business’s growth objectives with the prevailing economic environment. It cannot be business as usual over the medium-term.”

 

Capitec announces fee cuts

By Angelique Arde for Business Day

Capitec is cutting its fees. The bank, which normally announces its fee increases in March, made the announcement a week before new digital bank TymeBank is due to host an investor day, upping the ante in what could be a banking fee price war.

From 1 March, the monthly admin fee on the bank’s one and only account, the Global One account, will decrease from R5.75 to R5. The price of electronic payments on mobile and internet banking will decrease from R1.60/transaction to R1. Debit order fees will decrease from R3.70 to R3.50. The cost of drawing cash at all Pick n Pay, Shoprite, Checkers and Boxer till-points will drop from R1.60 to R1. And the cost of immediate payments has also decreased from R10 to R8.

International and online card purchases, transfers between own accounts and e-mailing statements on mobile and internet banking will remain free.

The bank has increased a few fees: the fee for in-branch transfers and payments will increase from R5.30/transaction to R6. Cash withdrawals from Capitec-branded ATMs will cost R6 per R1,000, while all other bank ATM withdrawal fees will be lowered to R8 per R1,000. Capitec used to charge a flat fee irrespective of the amount withdrawn.

Capitec said in a statement on Tuesday that the bank had experienced its highest single-month uptake to date, with more than 266,000 new clients joining the bank in January 2019.

In addition to low fees, Capitec clients get access to four savings plans, offering from 5.1%-9.25% interest per year,” said Francois Viviers, the bank’s marketing and communications executive.

 

New TymeBank signs up 50 000 users

Although the bank only soft-launched at the end of 2018, TymeBank has already signed up 50 000 customers. This is according to Business Tech, who heard from the company’s CEO, Sandile Shabalala, at the BusinessTech Digital Banking Conference on Wednesday.

Shabalala says that the new digital banking group is looking to radically change the way South Africans access banking services in the country – and has run its first full store activation in preparation for its official launch.

The bank’s soft-launch involved placing the group’s kiosks in selected areas. The bank operates on a partnership model with Pick n Pay and Boxer stores in South Africa. This provides an easy-to-access physical point of presence for customers in places they frequent.

The partnership gives the bank 750 points of presence through the retailers’ networks, and access to 10 000 cash till points. According to BusinessTech, this gives the bank access to an extensive network without having to spend a cent on building its own infrastructure

Follow us on social media: 

               

View our magazine archives: 

                       


My Office News Ⓒ 2017 - Designed by A Collective


SUBSCRIBE TO OUR NEWSLETTER
Top