TymeBank, a leading digital South Arican bank, announced its attainment of profitability in December 2023, making it the first digital bank to break even in South Africa and the entire continent within five years of its launch in February 2019.
“Less than half of the top 100 digital banks are profitable, and less than 5% of all neobanks worldwide have reached profitability. Our success, reaching profitability in less than five years, is a South African success story that our 8.5 million customers can share with pride,” said Coenraad Jonker, CEO of TymeBank.
TymeBank, which raised $77.8 million in a pre-Series C funding round in 2023, has experienced rapid year-on-year growth of approximately 30% in its lending portfolio, driven by Merchant Cash Advance, which is now financing over 50,000 SMEs across the country.
According to Tymbebank, its unique model, combining digital channels with in-store kiosks at major retailers, has played a crucial role in consistently acquiring approximately 150,000 customers each month. Strategic partnerships with major entities such as:
- Pick n Pay
- Boxer
- The Foschini Group (TFG), and
- The Zion Christian Church (ZCC)
have also contributed to TymeBank’s success.
TymeBank also lauds its ability to consistently introduce innovative products and services, including:
- The most affordable banking offering in South Africa
- Account opening in under 5 minutes
- An 11% fixed deposit savings rate
- Interest-free Grant Advance for social grant recipients
- Healthcare insurance (TymeHealth)
- Buy-now-pay-later product, MoreTyme
Dr. Patrice Motsepe, Founder and Chairman of major shareholder, African Rainbow Capital (ARC), emphasized the bank’s commitment to offering quality banking services to all South Africans and praised its unique proposition that continues to disrupt and transform the banking sector.
Looking ahead, Coenraad Jonker stated,
“We believe that we are now perfectly aligned with our goal of becoming one of the top three retail banks in the country. This ambitious target is our next measurable benchmark for success.”
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