Tyme Bank, South Africa’s first fully digital bank, has revolutionized the banking landscape with its innovative approach to financial inclusion. But who is the owner of Tyme Bank? The answer lies with African Rainbow Capital (ARC), a Black-owned investment company chaired by South African billionaire Patrice Motsepe. Since its inception, Tyme Bank has grown exponentially, becoming one of the fastest-growing digital banks in the world.
Let’s explore the history, ownership, and unique strategies that have made Tyme Bank a standout in the financial sector.
The Origins of Tyme Bank
Tyme Bank’s journey began in 2012 as a mobile money remittance operator under the name “Take Your Money Everywhere” (TYME). Initially, it was a project within Deloitte Consulting, led by Tjaart van der Walt and Coen Jonker, and funded by the MTN Group. The goal was simple: provide affordable remittance services through partnerships with retailers like Pick n Pay and Boxer.
By 2015, Tyme’s innovative core banking technology caught the attention of the Commonwealth Bank of Australia (Commbank), which acquired the company for R365 million. Commbank aimed to leverage Tyme’s technology to build a retail bank in South Africa. However, after a series of challenges, including the loss of key partnerships with MTN and Grobank, Tyme’s future seemed uncertain.
African Rainbow Capital Steps In
In 2018, African Rainbow Capital (ARC), led by Patrice Motsepe, acquired a 90% stake in Tyme from Commbank. This marked a turning point for the company. ARC’s investment allowed Tyme to rebrand as Tyme Bank and officially launch in February 2019. With a focus on simplicity, transparency, and affordability, Tyme Bank quickly gained traction, signing up over 7 million customers within a few years.
Today, the owner of Tyme Bank is primarily African Rainbow Capital, which holds a majority stake. Other notable shareholders include Tencent, the CDC Group, and British International Investment (BII).
Tyme Bank’s Unique Business Model
What sets Tyme Bank apart is its branchless, digital-first approach. Instead of traditional branches, Tyme Bank relies on a network of kiosks located in partner retail stores like Pick n Pay, Boxer, and The Foschini Group (TFG). This strategy keeps operational costs low, allowing the bank to offer no monthly fees and lower transaction costs.
Key features of Tyme Bank’s model include:
- Kiosk-based account opening: Customers can open an account in under five minutes at a kiosk.
- Affordable banking: No monthly fees and competitive transaction rates.
- Strategic partnerships: Collaborations with retailers and organizations like the Zion Christian Church (ZCC) have expanded its reach.
Expansion and Growth
Tyme Bank’s success in South Africa has paved the way for international expansion. In 2022, the Tyme Group launched GoTyme in the Philippines, partnering with JG Summit Holdings. This venture has already attracted over 1 million customers, showcasing the scalability of Tyme’s business model.
The group’s headquarters in Singapore and its product development hub in Vietnam highlight its global ambitions. With plans to enter Vietnam and other African markets, Tyme Bank is positioning itself as a leader in digital banking across emerging markets.
Shareholders of Tyme Bank
Here’s a breakdown of Tyme Bank’s key shareholders:
| Shareholder | Stake/Contribution |
|---|---|
| African Rainbow Capital (ARC) | Majority shareholder, led by Patrice Motsepe |
| Tencent | Strategic investor, providing technological expertise |
| CDC Group | Investor focused on sustainable development |
| British International Investment | Supports financial inclusion initiatives |
| JG Summit Holdings | Partner in the Philippines through GoTyme |
| Apis Growth Fund II | Investor in emerging market fintech |
| Norrsken 22 | Backs innovative startups in Africa |
The Future of Tyme Bank
Tyme Bank’s vision extends beyond South Africa. With a focus on financial inclusion and affordability, the bank aims to serve underserved communities globally. Its recent partnership with Nubank, one of the world’s largest digital financial services platforms, further solidifies its position as a leader in digital banking.
As the owner of Tyme Bank, African Rainbow Capital continues to drive the bank’s growth, ensuring it remains a key player in the digital banking revolution.
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Conclusion
So, who is the owner of Tyme Bank? The answer is clear: African Rainbow Capital, under the leadership of Patrice Motsepe, is the driving force behind this innovative digital bank. From its humble beginnings as a mobile money operator to becoming a global digital banking leader, Tyme Bank’s journey is a testament to the power of innovation and strategic partnerships. As it continues to expand, Tyme Bank is set to redefine banking for millions of people worldwide.
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