TymeBank, a digital bank in which African Rainbow Capital, owned by Patrice Motsepe, holds the majority share, announced that it had “onboarded” its eight millionth client last week. This significant milestone means that one in every five “eligible” South Africans now has a TymeBank account. This impressive growth has been achieved just four-and-a-half years after TymeBank’s launch in February 2019.
Accelerating Customer Acquisition Rate
TymeBank’s CEO, Coen Jonker, stated that their performance reinforces their position as one of the world’s fastest-growing digital banks and a credible alternative to legacy banks for South Africans. The bank’s customer acquisition rate is accelerating, with more than 200,000 customers signing up every month. The last million customers were acquired in record time – just under five months, despite ongoing challenges.
Overcoming Challenges and Optimizing Distribution Network
TymeBank’s success can be attributed to its tried-and-tested ‘phygital’ model, which seamlessly integrates the convenience of digital banking into physical retail ecosystems. The strength of their partnerships with leading retailers such as Pick n Pay, Boxer, and more recently TFG, allows them to optimize their distribution network. Growth has been achieved despite ongoing system outages at home affairs, which hinder the bank’s ability to verify customers’ identities during the onboarding process. Load shedding has also had an impact on the operation of stores and shopping centres.
Focus on Social Grants Recipients and More Affluent Customers
One of the reasons TymeBank has grown so quickly recently is its focus on social grants recipients. “We have put great effort into disbursing Sassa grants to beneficiaries and customer growth in that segment is solid,” said Jonker. The digital bank is also seeing more affluent customers sign up for its financial services proposition due to free banking and good interest rates on savings accounts. “We are now approaching R1-billion in balances for our fixed-deposit product,” said TymeBank chief commercial officer Cheslyn Jacobs.