If all goes according to plan, TymeBank – the digital bank backed by mining magnate Patrice Motsepe – will attract around 2,2 million new customers.
And if they manage to accomplish this ambitious feat and lend to 6% of customers, TymeBank Deputy CEO Tauriq Keraan says the bank will be well on its way to breaking even within just three years.
“We really believe that if we push it that hard it is possible for us to get to those kind of numbers in that period,” CEO Sandile Shabalala told Reuters.
The bank officially launched this week.
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Having already attracted 80 000 customers during its three-month soft launch phase, the bank’s projections, which are earlier than previously expected, aren’t as far-fetched as you might think if you consider the level of growth it has experienced thus far in a short period.
TymeBank’s unique selling proposition lies in its promise to deliver affordable and accessible banking services. To this end, it has partnered with Boxer, a subsidiary of retail giant Pick n Pay, to enable customers to set up bank accounts and be issued with debit cards from over 700 kiosks.
Being a fully fledged digital bank, Shabalala says the bank will be able to leverage on significantly reduced operating costs to pass on savings to consumers, giving them a competitive edge.
Targeted client segments include unbanked and under-served clients as well as small and medium enterprises, with an overall target of reaching 21 million people.
There are broader plans to establish kiosks at spaza shops and universities to offer financial products provided by Motsepe’s portfolio of partners under African Rainbow Capital.
Shabalala said plans are afoot to launch a credit card and unsecured lending business unit that will be piloted during the second half of the year.
In time, the bank plans to expand into the rest of Africa and some Asian countries.