TymeBank, backed by Africa’s first Black billionaire Patrice Motsepe, to launch in Indonesia

Timilehin Adejumobi -

Key Points

  • TymeBank, led by Patrice Motsepe, will launch in Indonesia by late 2024, marking its third Southeast Asian market entry.
  • The bank aims to replicate its South African SME success in Indonesia, introducing Merchant Cash Advances without a full banking license.
  • TymeBank, with over 8 million customers, is on track for 10 million in South Africa and 5 million in the Philippines by October 2024.

South Africa’s TymeBank, controlled by Africa’s first Black billionaire Patrice Motsepe, is set to expand its international footprint with a new launch in Indonesia by late 2024. This move aims to reinforce the bank’s position as a growing financial entity in emerging markets, with a particular focus on Southeast Asia.

Third Southeast Asian market entry

This expansion will mark TymeBank’s third entry into the Southeast Asian market. The bank previously launched in the Philippines in October 2022 and in Vietnam in January 2024. To enhance its market presence in the Philippines, TymeBank acquired Savii, a salary-based lender, to diversify its product range and boost profitability.

TymeBank’s strategy involves introducing innovative financial products for high-net-worth individuals and forging strategic local partnerships to meet regional needs.

Growth potential in Indonesia

Indonesia, home to over 60 million SMEs and a largely underserved population, presents significant growth opportunities for TymeBank. The bank, which has successfully lent $100 million to 60,000 small businesses in South Africa, plans to replicate this success in Indonesia by introducing its Merchant Cash Advance product to SMEs. This approach mirrors its strategy in Vietnam and will proceed without pursuing a full banking license.

Coen Jonker, Tyme Group chair, emphasized the profit potential in Indonesia’s small business lending sector. “By focusing on brand building without a full banking license, we can scale more quickly and reduce infrastructure costs,” Jonker stated. Despite a $42 million loss in 2023 during its first full year in the Philippines, TymeBank aims for profitability by 2025, with South African operations projected to break even by the end of 2024.

Rapid growth and strategic acquisitions

TymeBank, partially owned by ARC Financial Services Holding under Ubuntu-Botho Investments (UBI), has seen notable growth since its 2019 launch. The bank’s “phygital” model, blending digital channels with physical touchpoints through strategic partnerships, contributed to a customer base exceeding 8 million in 2023.

TymeBank is on track to reach 10 million customers in South Africa and 5 million in the Philippines by October 2024. The rapid growth in the Philippines, achieving in two years what took six years in South Africa, underscores TymeBank’s effective market strategy. The favorable regulatory environment and growth potential in Southeast Asia continue to make it a key focus, with potential future expansion into Africa also under consideration.