04 November 2018
The company wants TymeBank to grow quickly to outpace rivals snapping at its heels
African Rainbow Capital (ARC) announced on Friday it had received all regulatory approvals necessary to acquire TymeDigital from the Commonwealth Bank of Australia and will now look to add strategic investors capable of helping the country’s newest bank grow quickly.
With a number of new entrants hot on its heels — including Michael Jordaan’s Bank Zero and Discovery Bank — Tyme will now be perfecting its operating processes and rounding out its product offering before undertaking a more aggressive roll-out to its partner, Pick n Pay stores. The bank will be renamed TymeBank when it officially launches to the public.
ARC will be seeking to include two or three strategic investors in due course. “We will keep ARC’s stake well above 50%,” says co-CEO Johan van Zyl. “But consistent with our operating model, we will look to dilute our shareholding to investors we think can help us scale the business. These include investors that have access to client pools, and investors interested in lowering the cost of banking fees,” says Van Zyl.
ARC will also be splitting the business into two parts. TymeBank will comprise the highly anticipated bank offering, while the technology underpinning the core banking system will be housed in its own entity, where it will be marketed to interested parties. The technology is also being applied by the Commonwealth Bank in markets including Indonesia and New Zealand.
“The two are intertwined,” says Van Zyl. “If we can demonstrate TymeBank works and is successful, this will greatly aid the marketing of the technology. There is a lot of interest in the technology as it can significantly bring down costs for a bank.”