TymeBank Seeks $100 Million to Fuel South African Expansion
TymeBank is reportedly in the process of raising at least $100 million to support its ambitious expansion plans within South Africa.
“In South Africa, we want to be the fastest-growing bank. We aim to be in the top three in terms of customer numbers and return on equity. Initial engagement with investors has encouraged us to consider raising a larger round to enable the group to accelerate the pursuit of further attractive opportunities that we currently see in the industry”, said CEO Coen Jonker.
TymeBank initially drew consumers by offering a fee-free debit card and a transactional bank account. This approach has been particularly effective in a country where about 11 million people or 20% of the population are unbanked or underbanked.
In 2022, TymeBank broadened its service offerings by acquiring Retail Capital, a fintech loan company. Beyond banking services, the bank also provides health and funeral insurance. Customers can open accounts online or at self-service kiosks in retail stores across South Africa.
“They’ve done well in gaining account openings in a lower-income demographic,” said Kokkie Kooyman, director and portfolio manager at Denker Capital. “The challenge and it is now starting in that market segment is not only to have people open accounts, but also to make them their primary bank account.”
TymeBank’s focus on providing accessible financial services and its strategic expansion plans underscore its commitment to transforming the banking landscape in South Africa. With the potential new funding, the bank aims to strengthen its position and pursue further growth opportunities in the competitive banking industry.
Credit: PYMNTS
