TymeBank, which is owned by billionaire Patrice Motsepe’s African Rainbow Capital Investments (ARC Investments), is on track to acquiring two million customers by August this year.
According to an update by ARC Investments on Friday, the digital bank is also signing up around 100,000 new customers every month.
TymeBank officially launched in February 2019 and now has 1.8 million customers. Its growth has exceeded ARC Investments’ expectations, as it only anticipated the bank to onboard two million customers by December 2020.
This growth has nevertheless slowed slightly after South Africa went into lockdown in March, ARC Investments said. The bank’s kiosks in Pick n Pay and Boxer stores subsequently saw reduced activity.
ACR Investments added, “Coupled with ambassadors having worked less hours as a precautionary measure, and therefore translating to less assistance to on-board customers and deal with customer queries, it resulted in the bank onboarding approximately 20 percent less customers in April.”
The lockdown further delayed TymeBank’s plans to onboard more members of the Zion Christian Church (ZCC), especially at the church’s headquarters at Moria in Limpopo.
In February, TymeBank announced a partnership with ZCC to provide services to the church’s six million adult members.
900,000 active accounts
ARC Investments said out of the 1.8 million accounts TymeBank has onboarded so far, 900,000 are active, with the average number of transactions per active account also rising.
Customer deposits passed the R1 billion mark in April. The group added, “In terms of the bank’s credit business, and specifically its unsecured lending proposition to customers, which has been piloted but not formally launched, management is exercising significant caution in the context of a challenging economic environment.
“The bank is considering alternative credit products which do not carry the same longer-term risk as an unsecured term loan.”
TymeBank has also finalised a number of partnerships to expand its range of products, including one on bancassurance.
“TymeBank also successfully launched a transactional account for small businesses, largely sole proprietors. This segment is not served well by the incumbents but represents a large component of entrepreneurs in South Africa,” Arc Investments said.
Besides TymeBank, ARC Investments also has a stake in mobile operator Rain, which has recently announced plans to expand its 5G footprint in South Africa.