This year saw a shift in the banking industry with the launch of TymeBank, one of South Africa’s innovative digital banks. African Rainbow Capital, a fully black-owned and controlled investment company, is TymeBank’s majority shareholder which makes Tymebank the first majority black-owned retail bank in South Africa. In September 2018, the bank announced in a press briefing that they had been granted a licence by the South African Reserve Bank, which makes this a first since the last licence was granted in 1999.
Change is Inevitable
During their first week of opening in November 2018, the bank signed up 1 800 new clients and they continue to set trends in an industry that once had a handful of players with brick and mortar branches. The digital offering and ease of use will be popular among millennials and Generation Z urban consumers who need a new solution. Millennials in South Africa account for 51% of the workforce and by 2020, 24% of the working population will be made up of Generation Z, according to Momentum. This change will affect existing banking models and make way for even further disruption.
The latest figures show that with little to no advertising, TymeBank is growing rapidly in the South African market. Talking about their progress at the BusinessTech Digital Banking Conference, company CEO, Sandile Shabalala mentioned that the bank has already signed up over 50 000 customers following their soft-launch in November 2018.
Sandile Shabalala mentioned that the bank has already signed up over 50 000 customers following their soft-launch in November 2018.
Consumer banking facelift
TymeDigital CEO, Sandile Shabalala says accessing TymeBank will be a simple process that will not use customer data and they will integrate financial education for their consumers, as this is one of the aims that is at the heart of the bank. They also want to assure consumers that banking with TymeBank will prove to be cheaper because they do not have physical branches. Instead they have set up 700 kiosks at various Pick n Pay and Boxer stores to be able to reach people, even in rural areas, and their contact centre attends to customer queries
Digital banking on the rise
Banking in South Africa will see a massive shift in 2019 with Bank Zero and Discovery Bank also ramping up their services.
Banking in South Africa will see a massive shift in 2019 with Bank Zero and Discovery Bank also ramping up their services. The digital banking era is coming into play in a way that will increase competition for the incumbents, where the fast pace of innovation in the industry will change the face of banking in South Africa.
Consumers, on the other hand, will reap great benefit from the changes which range from affordable and more convenient banking, simplicity and greater access for the unbanked. It is estimated that South Africa has 11 million unbanked or underbanked individuals who would benefit from increased disruption in the banking industry.