TymeBank, South Africa’s leading digital bank, controlled by billionaire businessman Patrice Motsepe, marked a historic milestone with its first-ever profitable month in December 2023, five years after its establishment.
The announcement positions TymeBank among the fastest-growing digital banks globally. While the bank did not disclose the exact profit figure, the achievement underscores its resilience and strategic growth in the competitive digital banking landscape.
This success follows a significant setback, as the bank reported a substantial loss of R858 million ($45 million) on June 30, 2023. The turnaround showcases the resilience and adaptability of TymeBank in navigating challenges and staying committed to its mission.
Motsepe spotlights TymeBank’s disruptive edge in affluent markets
Coenraad Jonker, the CEO of TymeBank, reflected on the accomplishment, stating, “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.”
Motsepe, the influential owner with a substantial stake in TymeBank through ARC Financial Services Holding, emphasized the bank’s appeal to a more affluent consumer market. He highlighted TymeBank’s disruptive proposition, characterized by innovation, customer-centric transparency, and accessibility, which has resonated with consumers and contributed to rapid growth and high customer satisfaction.
TymeBank surges to 8.5 million customers: A remarkable growth fueled by Motsepe’s leadership
TymeBank, partially owned by ARC Financial Services Holding, a Black-owned and -controlled company under Ubuntu-Botho Investments (UBI), has experienced remarkable growth since its launch in 2019. The bank’s customer base has surged to 8.5 million, supported by funding from ARC and strategic leadership from Motsepe.
The bank’s expansion strategy includes the acquisition of Retail Capital, a fintech lender catering to small and medium-sized enterprises. In 2022, ARC provided TymeBank with an additional R257 million ($15.25 million) in funding to meet its capital requirements and facilitate the acquisition of Cape Town-based fintech lender Retail Capital.
Recent funding rounds have further fortified TymeBank’s growth potential, with $77.8 million secured during a pre-Series-C funding round. International investors Norssken22 and Blue Earth Capital have shown confidence in TymeBank’s vision, positioning the bank for further expansion and solidifying its position in the digital banking sector.
