The bank has no monthly banking fees and in most cases, transaction costs are 30 to 50% lower than what customers would pay at other banks.
TymeBank is a digital bank that leverages the use of digital technology to make banking simple and affordable.
The bank is focused on acquiring customers who want to benefit from lower banking costs as well as improved customer experience. The business managed to achieve its revenue and cost targets, despite experiencing some significant headwinds during this financial year.
TymeBank forecasts to break even in 2022.
It entered into an agreement with the Zionist Christian Church (ZCC) in February 2020 to onboard a large proportion of the ZCC’s 9 million member base. “This initiative had largely been postponed due to the impact of the Covid-19 pandemic and the National Lockdown and should gain momentum once preventative Covid-19 measures are relaxed and it is reasonably safe to resume activities to onboard church members.”
Significant international equity funding secured in TymeBank and Tyme Global
African Rainbow Capital Financial Services Holdings (ARC FSH) injected an additional R505 million into TymeBank and TymeGlobal during the year as part of the scheduled capital requirements for the bank.
At 30 June 2021 the ARC Fund had an effective interest of 28.8% in TymeBank, being its 49.9% of the 57.7% interest held by ARC FSH in TymeBank.
TymeBank and TymeGlobal have secured additional equity funding of $110 million or R1.6 billion from ARC FSH and two new international shareholders, Apis Growth Fund II and JG Summit Holdings.
The additional equity funding is split into two tranches.
The first tranche of $80 million or R1.1 billion was concluded post signing of the agreements in April 2021. The second tranche was not yet concluded at the time of reporting.