Patrice Motsepe Buys 100% stake in Digital Bank TymeDigital
The below article has been updated on 20 March 2019 as more information has been obtained.
It is the South African bank that offers its members no monthly banking fees, no documents needed to sign up and “pay as you use banking”.
TymeDigital is a registered South African bank with a strong fintech focus. It was majority owned by the Commonwealth Bank of Australia (CBA), a leading banking group in its core markets of Australia and New Zealand.
The bank has been trialing its operations before it officially launched this year. It aims to provide affordable and accessible banking services through a growing network of partners, including Pick n Pay. Targeted client segments include unbanked and under-served clients as well as small and medium enterprises.
According to the African News Agency, Patrice Motsepe’s African Rainbow Capital (ARC) confirmed in August last year that it has reached agreement to acquire 90 percent of the new digital bank, TymeDigital, for an undisclosed sum through its subsidiary, ARC Financial Holding Company (FinHoldCo).
African Rainbow Capital (ARC) is a fully black-owned and controlled company focusing on the South African and African financial services industry and businesses that deliver exceptional returns on equity. It is listed on the JSE, under the Finance – Speciality Finance sector. The company is founded by mining magnate, Patrice Motsepe, also its chairman.
In August, FinHoldCo only held a 10 percent shareholding in TymeDigital, and the acquisition meant that it will now wholly own the bank. It was reported that the acquisition then is subject to approval by the regulatory authorities, including that of the Prudential Authority of the South African Reserve Bank.
FinHoldCo has a strategic objective to invest in insurance, asset management, specialist financial services and banking. ARC said that the control of a digital bank was a critical step in driving synergies among the various companies in these four subcategories to enhance value creation.
Here’s a timeline of some of the highlights and significant milestones along TymeBank’s journey.
March 2019: TymeBank announces on Facebook they’ve welcomed their 100 000th customer.
February 2019: TymeBank says on its Facebook page that you can now buy airtime, data, and SMS bundles from your EveryDay Account via internet banking and the TymeBank SmartApp for Android.
February 2019: TymeBank launches its TV advert.
February 2018: TymeBank launches formally in 500 Pick n Pay and Boxer stores. Its customers are able to open a fully FICA compliant bank account in Pick n Pay and Boxer stores and be issued with a Visa debit card within five minutes. No documentation is required. Since December over 50,000 customers have already opened a TymeBank account.
December 2018: The digital bank had its soft launch in December – the bank went live in 20 Pick n Pay and Boxer stores, there were only six kiosks where you can open an account (at Pick n Pay stores in Rosebank, Kensington, Bedfordview and Kenilworth, and Boxer outlets in Alexandra and West Street, Durban).
November 2018: TymeBank unveiled its first product centred on a transactional bank account, called EveryDay. It has no monthly fees, most of the day-to-day banking transactions are free and there’s low charges for other transactions. This is a first in the South African market.
November 2018: Billionaire Patrice Motsepe’s his investment vehicle, African Rainbow Capital Investment (ARCI), received the green light by Prudential Authority to acquire a majority stake in TymeBank. The bank, which was previously referred to as TymeDigital, was majority owned by Commonwealth Bank Group.
August 2018: Patrice Motsepe’s African Rainbow Capital buys TymeDigital from the Commonwealth Bank of Australia.
This article was originally published on 8 August 2018 and was sourced by the African News Agency.