TymeBank, Africa’s first digital bank to achieve profitability, has reached a significant milestone by surpassing 10 million customers, less than six years after its 2019 launch.

Karl Westvig, who officially took over as CEO on 1 October 2024, expressed gratitude to the bank’s customers, stating: “We’d like to thank our 10 million customers for choosing us. This achievement is a testament to our team’s dedication to providing equitable banking that meets the evolving financial needs of South Africans and empowers them to achieve financial freedom.”

He further highlighted: “Among our most significant achievements has been getting the business to break even, arguably in record time, while serving the poorest in our communities, a feat that has the potential to change what banks worldwide can do to provide access to customers across the economic spectrum.”

TymeBank’s growth is underscored by several key milestones:

• The bank now holds close to R7 billion in customer deposits, making it the fastest-growing bank in South Africa in terms of deposits for 2024, outpacing the country’s ‘Big Five’ banks.
• More than $600 million (R12 billion) has been disbursed to over 80,000 small businesses in South Africa, bolstered by the acquisition of Retail Capital, a fintech company that provides funding to SMEs. This acquisition has been pivotal in expanding TymeBank’s SME lending portfolio.

These achievements reflect the bank’s commitment to inclusive banking solutions and its growing status as a trusted partner for both individuals and businesses looking to unlock their financial potential.

TymeBank, part of the Tyme Group, which is currently valued at nearly US$1 billion, credits its success to a customer-centric approach, robust technology, and strategic partnerships. Its innovative products have resonated with consumers seeking convenient, secure, and user-friendly financial solutions. TymeBank’s “phygital” model, which integrates digital banking with physical retail spaces, has reshaped banking in South Africa. Partnerships with major retailers like Pick n Pay, Boxer, and TFG have further optimized its distribution channels.

Looking ahead, TymeBank aims to expand its market share by improving customer service and enhancing its banking app experience to attract more affluent customers. Additionally, the bank plans to broaden its services through strategic partnerships. Its entry into consumer lending, powered by AI tools that monitor customer spending patterns, is a key pillar of its personal loan strategy.

To celebrate its latest milestone, TymeBank is running a month-long campaign in October, thanking loyal customers and social media advocates with gifts and prizes, to be announced on its social media platforms.

Meanwhile, Tyme Group, now serving over 14 million customers, is set to enter Indonesia, Southeast Asia’s largest economy, this month. The group will introduce its merchant cash advance solution for small businesses in Indonesia, following a partnership with a local fintech lender. This expansion follows the successful launch of GoTyme Bank in the Philippines in October 2022 and its entry into Vietnam earlier this year.

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Capitec Bank’s days of regarding itself as SA’s most prominent digital bank appear to be numbered.

Capitec seems to have reached its peak and other banks are catching up. This does not mean the queues at Capitec banks are a thing of the past.

Earlier this year, Capitec informed investors that retail clients using digital channels climbed by 28% to 8.6-million for the year ended February 28 2021. Capitec said it was the biggest digital bank in SA with active users of its app, USSD channel, or a combination of digital channels.

“We embraced innovation and digitalisation, and so did our clients, and the permanent benefits and cost savings are expected to flow in the coming years,” Gerrie Fourie, CEO of Capitec, explained at the time.

“Clients are now more than ever before motivated to use digital channels such as our new banking app as they are set to benefit from the lower transaction fees and zero-rated data charges.”

But a new challenger, TymeBank, is quietly positioning itself as the next big mass-market digital bank for SA.

The bank is 100% digital. It uses apps and online platforms to support its customers, rather than traditional physical branches. TymeBank is already making strides and has a real possibility of becoming SA’s biggest digital bank in a few months.

The Covid-19 pandemic may have thrown TymeBank’s plans off course. In February 2020, TymeBank — owned by billionaire Patrice Motsepe through JSE-listed African Rainbow Capital — announced a partnership with SA’s largest religious affiliation, the Zionist Christian Church (ZCC). There are about 12-million ZCC members.

The innovative partnership will see TymeBank become the financial services partner of choice for ZCC church members. If the plan goes ahead, the TymeBank bank card will double as a membership card for ZCC members.

The product will be supported using ZCM (Zion City Moria) branded portable kiosks staffed by the church’s in-house mobile digital services company, Zetnet. The development would propel TymeBank to the front of the race to be SA’s biggest digital bank.

As more South Africans get vaccinated, the better the chances that churches will resume normal services and gather huge numbers of the faithful. When that happens, TymeBank (Take Your Money Everywhere) will be available at ZCC churches.

Last week, TymeBank stated it had successfully onboarded 3.45-million customers in just over two years since launching.