TymeBank says it has reached a 4 million customer milestone, with the digital bank onboarding 140 000 customers each month versus 100 000 last year.
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 acceleration in customers signing up for TymeBank bank accounts comes at a time when consumers are demanding more value as well as increased transparency in banking fees.
“We are pleased to have achieved a four-million customer base within about 32 months. We’ve expanded our offering and enhanced product functionality to ensure we can give customers everything they need in a single banking account, while empowering them to pay nothing – or next to nothing – on banking fees, depending on their banking behaviour,” TymeBank CEO Tauriq Keraan said.
“The acceleration in customer growth tells us we’re on the right track.”
Most new TymeBank accounts are opened at kiosks, and just under 20% of new bank accounts are now opened online, up from 15% since April this year.
“TymeBank’s hybrid model of digital banking and physical service points is what sets us apart, which is why more than 80% of accounts are opened at our instore kiosks. That said, we’re seeing more customers making use of our digital channels, which is in line with the rapid growth in digital adoption among ordinary South Africans, largely driven by the Covid-19 pandemic as well as increasing trust and confidence in digital banking,” says Keraan.
TymeBank’s partnership model with two retailers, Pick n Pay and Boxer, has been an integral part of its strategy to acquire customers and drive usage and has significantly contributed to the bank’s success since its February 2019 launch.
In line with the bank’s intent to diversify its current customer profile to include more customers from the middle and upper middle-income groups, on 5 October TymeBank announced a strategic partnership with TFG (The Foschini Group), a leading fashion retailer with more than 26 million loyalty customers, to meet the evolving financial services needs of consumers in the TFG ecosystem.
“As TymeBank management, we are proud of what the bank has achieved in the last 32 months. We have four million customers, strategic partnerships with three South African retail giants as well as the Zion Christian Church and have attracted significant investments from major international investors. We’re poised for further growth and there’s an exciting future ahead,” says Keraan.