When it comes to the future, TymeBank chief executive Coenraad Jonker says the most ambitious target is to become one of the top three retail banks in the country in terms of return on equity. 

“We’re at the start of our next three-year plan for the business, and we have tentatively started offering a short-term unsecured consumer loan product. For the moment, it is purely outbound on an invitation-only basis, so we are not offering it to the broader market yet – and that’s to make sure we grow the product responsibly before going big with it,” he says. 

Other initiatives in the pipeline included credit cards and overdrafts, but the focus right now was a virtual card proposition where clients could use a virtual card locally and internationally.

“We are extremely proud particularly (since) less than half of the top 100 digital banks globally are profitable. In fact, the ‘Future of Neobanking – Profits at the End of the Tunnel’ report by global consultancy Simon-Kucher found that less than 5% of all neobanks worldwide have reached profitability. And of those that are in the black, most have taken a lot longer to become profitable; notable examples being Latin America’s Nubank and London-based Monzo, which took eight and seven years respectively. Having achieved our first month of profitable operations in a significantly shorter timeframe is a South African success story that our 8.5 million customers can share with pride,” says Jonker.

The bank attributes its success to several key factors:

• A low-cost model that includes a footprint of more than 1,000 kiosks available to consumers through partnerships, and in-store kiosks at major retailers;
• Sustained growth of about 150,000 new customers each month;
• Partnerships with reputable, established brands such as Pick n Pay, Boxer and the Foschini Group; and
• The rapid 30% growth of its lending portfolio year-on-year, driven by Merchant Cash Advance, which currently finances more than 50,000 SMEs across the country.

TymeBank customer growth chart

Other successful TymeBank initiatives include the launch of an interest-free Grant Advance for social grant recipients; the launch of  healthcare insurance (TymeHealth) in collaboration with the National Healthcare Group – a banking first in South Africa; and the launch of the buy-now-pay-later product, MoreTyme, at a time when the concept was relatively unknown in South Africa.

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“As the country’s first digital bank we’ve overcome numerous challenges as we consistently innovated and broke new ground in the market. Through it, our team has remained focused and committed to our mission of providing South Africans with affordable, accessible and quality banking services,” Jonker adds.

Dr Patrice Motsepe, founder and chairperson of major shareholder African Rainbow Capital, notes that “as the business evolves, we are seeing it gradually appeal to more affluent consumers who appreciate its unrelenting innovation, customer-centric transparency and accessibility”. DM