Several years ago, no one would have compared digital banks to their traditional counterparts. Today we are seeing the emergence of digital banks across the world. The pandemic has fueled the demand for digital banking resulting in the rapid growth of African startup TymeBank.
South African digital bank TymeBank has secured a $110 million investment from investors based in the UK and the Philippines. The company made the announcement in a public statement and will utilize the funds to boost its growth and bolster commercial expansion countrywide.
This investment will come in two phases: $34 million has already been injected into the business while $75 million is expected in the next 12 to 15 months.
Reuters reports that TymeBank will partner with JG Summit to expand into Singapore. JG Summit is one of the Philipine’slargest conglomerates. The duo has applied for a local digital bank license. TymeBank, majorly owned by Patrice Motsepe – a South African billionaire, plans to expand further across South Africa relying on funds from the private equity fund Apis Partners.
Asian markets are now more receptive to digital banking services fueling the boom in digital connectivity and the role of tech firms in offering low-cost financing services. For instance, last year the Philipines Central Bank approved the creation and licensing of digital banks.
In South Africa, TymeBank’s customers are setting up accounts and receive a debit card in more than 700 automated kiosks across Boxer supermarkets owned by the larger chains such as Pick n Pay where the account holders benefit from store rewards programmes.
TymeBank has thus far attracted over 2.8 million customers across South Africa over its two years of operation. Tyme will replicate part of its strategy in the Philipines where JG Summit will leverage its retail reach in pharmacy stores, shopping malls, and groceries, as well as interests in manufacturing hotels and real estate.