TymeBank, one of SA's digital banks looking to disrupt the traditional banking system, has facilitated R10 million worth of transactions on day one of going live.
This was revealed by Coen Jonker, co-founder and chairman of TymeBank, at the bank's official launch at its Rosebank offices this morning.
According to Jonker, the bank, which had a soft launch in November last year, already has 80 000 customers.
TymeBank bills itself as 'SA's first digital bank' and aims to disrupt the industry with a proposition that introduces `simple, accessible and affordable banking'.
It wants to create a platform that stimulates economic participation and facilitates broader financial inclusion.
TymeBank is owned by African Rainbow Capital (ARC), a company within business mogul Patrice Motsepe's Ubuntu-Botho Investments stable, making it SA's first majority black-owned bank. ARC bought the business from the Commonwealth Bank of Australia in November 2018.
With the launch of three digital banks - Bank Zero, TymeBank and Discovery Bank - the South African retail banking industry is set for a shake-up this year.
Partnership with Pick n Pay
TymeBank has formed a long-term strategic partnership with retail giant Pick n Pay, allowing its customers to bank at Pick n Pay and Boxer stores around the country.
The bank already has over 500 kiosks in the market. Once it completes its rollout, there will be approximately 730 TymeBank points of presence, where customers can open accounts, and over 10 000 till points across 1 500 stores, where customers can withdraw and deposit money.
Customers can open a fully FICA-compliant bank account and receive their personalised Visa debit card at a TymeBank kiosk in under five minutes, or they can open an account with limited functionality on the TymeBank Web site.
At this morning's event, TymeBank demonstrated how a bank account can be opened in under five minutes.
No documents are required to open an account - customers only need their South African ID number and cellphone. The FICA process is completed through the capture and verification of biometric and other data at the kiosk. Once the kiosk issues customers with their Visa debit card, they can transact straight away.
When signing up, customers can automatically join the Pick n Pay Smart Shopper programme.
TymeBank customers earn Smart Shopper bonus points everywhere they use their debit card, not just in Pick n Pay stores.
"The TymeBank debit card is automatically linked to Smart Shopper should a customer opt into the loyalty programme when signing up for their TymeBank account," says Kate Leslie, head of Smart Shopper at Pick n Pay. "The TymeBank card will then double as a Smart Shopper card."
Credit cards in the pipeline
The bank also launched its EveryDay transactional account bundled with a savings tool called GoalSave, its MoneyTransfer solution, and its TymeCoach App, which gives consumers free access to their credit report.
"We are planning to introduce credit products later this year, as well as an SME proposition, but for now, our focus is on getting simple and cost-effective banking solutions into people's hands. Our mission is to drive meaningful financial inclusion, by making banking more accessible to all South Africans," says Sandile Shabalala, CEO of TymeBank.
"We see it as our responsibility to take the complexity out of banking for consumers and to give them insights into how the financial system works. We believe that uncomplicated banking, coupled with relevant knowledge, will empower people to make more informed and responsible decisions about their own financial futures. Why shouldn't banks be more transparent with customers about what they are paying for?"
Tech leverage
According to TymeBank, traditional banking in South Africa typically comes with operations that are expensive to maintain and, historically, innovation has progressed at a slow pace in this sector.
"We are leveraging our cloud-based technology, which doesn't come with a legacy burden and is one of the many reasons we're able to pass cost savings onto the consumer. We have built an open banking platform, which allows us to move with speed with the partners with which we engage," says Shabalala.
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