Johannesburg 26 January 2022
Transaction charges at TymeBank, South Africa’s leading digital challenger bank, are significantly lower than what customers of the big five traditional banks are paying. This is evidenced in the annual Solidarity Research Institute (SRI) 2022 Bank Charges Report*, which was released last week.
TymeBank’s key value proposition to consumers is its cost-effective banking solution. The Solidarity Report, in its comparison of all the major SA banks, verifies this claim. Although the report highlights TymeBank’s position mainly in the digital or online banking category, the bank’s proposition sees it competing – on products and services – with all major banks in the country.
Tauriq Keraan, CEO of TymeBank, said the bank was pleased with the report but pointed out that the breadth of the bank’s transactional offering meant it could hold its own when compared with traditional retail banks, not just other online banks.
“Our transactional offering has broadened to the extent that we can now compete head on with traditional banks. Unlike traditional banks, we do not have the costs normally associated with legacy systems, so we are able to pass this benefit onto our customers. We are a bank for all South Africans and the work done on expanding our product and features portfolio has improved our competitiveness,” says Keraan.
A recent customer study by data analytics and brand consulting company Kantar in 2021 revealed that customers joined TymeBank for the following reasons:
- No bank charges
- User-friendly banking app
- Convenience of withdrawing at Pick n Pay and Boxer stores
- Inclusive/a bank for the people
- The benefit of earning Smart Shopper points when swiping the card
- Higher interest rates on savings
While TymeBank initially attracted customers in the lower income segments, there has been noticeable growth in customers earning between R25K-R40K a month, according to the Kantar research. The bank also has one of the highest net promoter scores (NPS) of all retail banks in South Africa and an above average NPS across low- and middle-income brackets.
“Even though most TymeBank customers are multi-banked, we are becoming increasingly attractive to a wider, more affluent base because of our value proposition, which combines low costs, transparency, and ease of banking,” says Keraan.
As a digital bank in South Africa with an international arm and global investors, TymeBank benchmarks itself against other neobanks around the world, using them as a yardstick to provide value for its clients and to offer best-of-breed functionality in its operations.
“The trends for digital banks, particularly in emerging markets, point to strong demand from consumers from all walks of life as they seek a viable long-term alternative to traditional banks. We expect this to be the case in South Africa as well,” says Keraan.
Notes to Editors
Key features of TymeBank’s offering
TymeBank offers a zero-monthly fee transactional account to consumers from the age of 16 and sole proprietors. Features available on this account include a money transfer service, SendMoney, a free GoalSave tool, as well as MoreTyme™, the bank’s interest-free buy now pay later product. The GoalSave tool allows customers to open up to 10 savings pockets, earning a maximum interest rate of 8% per annum, with the option to access the money immediately.
TymeBank is currently one of the world’s fastest-growing digital banks, with more than 4.3 million customers acquired since launching in February 2019. The bank is founded on simplicity, transparency and affordability and is designed to make digital banking accessible and affordable to all South Africans across the economic spectrum.
TymeBank is majority owned by Dr Patrice Motsepe’s African Rainbow Capital (‘ARC’). Recent investors include Tencent, internet and technology company based in China, and CDC Group, the UK’s development finance institution and impact investor.
Other investors are UK based Apis Growth Fund II (‘Apis’), a fintech private equity fund based in the UK, JG Summit Holdings (JG Summit) a Philippines based conglomerate owned by the Gokongwei family, African Fig Tree (AFT), a ring-fenced vehicle established by the founders along with key individuals, and the Ethos AI Fund.
TymeBank is a member of the Tyme Group of companies with headquarters in Singapore. TymeBank and its sister company, Tyme, recently raised US$180 million, which is being deployed to enable growth both locally in South Africa and in the Philippines.
Issued by Aprio on behalf of TymeBank
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