TymeBank reached its first month of profitability in December 2023, less than five years since launching in February 2019. This makes it the first digital bank to break-even in South Africa and on the continent. This milestone marks a pivotal moment for South Africa’s only black-controlled bank, making it one of the fastest-growing digital banks globally, and the first African digital bank ever, to reach this milestone.
CEO of TymeBank, Coenraad Jonker said: “We are extremely proud of our achievement, particularly when you consider that globally, less than half of the top 100 digital banks are profitable. In fact, a recent study stated that less than 5% of all neobanks worldwide had reached profitability. And of those that are in the black, most have taken a lot longer to become profitable; notable examples being Latin America’s Nubank and London-based Monzo, which took eight and seven years respectively. Having achieved our first month of profitable operations in a significantly shorter timeframe is a South African success story that our 8.5 million customers can share with pride.”
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What lead to TymeBank’s success?
The bank attributes its success to several key factors. Its model of combining digital channels with in-store kiosks at major retailers consistently acquires around 150,000 customers each month. Also the rapid 30% growth of its lending portfolio year-on-year, driven by Merchant Cash Advance, which is now financing more than 50,000 SMEs across the country.
Additionally, the success is thankful to the long-standing strategic relationships with Pick n Pay and Boxer, The Foschini Group (TFG) and the Zion Christian Church (ZCC). The landmark is also accredited to consistent innovation and launch of a list of firsts, including one of the most affordable banking offerings in South Africa; the ability to open a bank account in under 5 minutes; South Africa’s leading fixed deposit savings rate of 11%; the launch of interest-free Grant Advance for social grant recipients; the launch of healthcare insurance, TymeHealth, and the launch of the buy-now-pay later product, MoreTyme.
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