African Rainbow Capital Financial Services Holdings (ARC FinHoldCo) announced on Thursday that it has invested R300 million South Africa’s first fully digital bank TymeBank.
ARC FinHoldCo increased its holding in TymeBank to 100% over the course of the year, new partners were introduced resulting in a sell-down of control to 65.5% at 30 June 2019.
The bank, which is backed by billionaire Patrice Motsepe, said it was embarking on a capital raise which will see the ARCH FinHoldCo interest diluted further.
TymenBank is adding 3 500 and 4 000 customers per day, with about 40% of bank accounts being active leverages the use of digital biometric technology to make banking simple and affordable.
ARCH FinHoldCo is a company within Motsepe’s Ubuntu-Botho Investments stable.
“ARC Finholdco invested an additional R300 million over the period under review in Tyme Bank,” African Rainbow Capital informed investors on Thursday.
At 31 December 2019, the bank had cumulatively signed-up 1.1 million customers of whom 440 000 were actively using their accounts.
“The bank is well-positioned within the SA banking sector to implement its unique low-cost banking fee model as well as customer experience value propositions,” said African Rainbow Capital.
Since launch, the bank has embarked on a number of partnerships in an effort to not only improve its value proposition but also drive monetisation.
“The technology, which is owned by TymeGlobal is transferable to other jurisdictions and is already being used in 3 countries, with a number of new opportunities being investigated.”