TymeBank, a digital-only bank, has achieved a significant milestone by becoming the first digital bank in South Africa and the entire continent to generate profits. This achievement occurred in December 2023, just under five years since its launch in February 2019. The bank, controlled by African Rainbow Capital (ARC), considers this moment pivotal, as it is the only black-controlled bank in South Africa.
TymeBank, South Africa’s first digital-only bank, has been steadily gaining 150,000 new customers every month, surpassing the impressive milestone of eight million customers. ARC has reported that TymeBank and GoTyme have achieved an annual revenue run rate of over R1.8 billion and R100 million, respectively. The company is experiencing rapid growth, acquiring 450,000 new customers per month in South Africa and the Philippines.
TymeBank credits its achievements to various crucial elements. These include its approach of integrating digital channels with in-store kiosks at major retailers, its enduring strategic partnerships with multiple retailers, and the ongoing trust of its shareholders, as demonstrated by the successful capital raise by Tyme Group in the previous year.
Additionally, the bank emphasizes the noteworthy 30% growth in its lending portfolio on a yearly basis, which now supports over 50,000 SMEs nationwide. Dr. Patrice Motsepe, the founder and chairman of ARC, emphasizes that TymeBank’s significant accomplishment is the result of over four years of focused dedication, strategic investments, and a steadfast commitment to providing high-quality banking services to the entire South African population.
TymeBank’s CEO, Coenraad Jonker, emphasizes the significance of this stage for the business, as less than 50% of the top 100 digital banks worldwide are currently making a profit. Jonker expressed that the accomplishment of attaining profitability within a considerably shorter period of time is a success story from South Africa, which can be proudly shared by their 8.5 million customers.
