TymeBank Review – Unbiased Pros and Cons Revealed - ☑️ (2023) (2024)

TymeBank is an exclusively digital retail bank based in South Africa.The name of the business was changed in November 2018 from TymeDigital by Commonwealth Bank SA to TymeBank

Choose your quick section of ourTymeBank reviewbelow.

A Quick Overview of our TymeBank Review:

• ✔️Background of TymeBank
• ✔️TymeBank Shares Growth Driver
• ✔️TymeBank Investor Tip
• TymeBank Major Shareholders
• How to buy TymeBank Shares

TymeBank is now likely to reach the two-million-customer target before August, well ahead of targeted December, said ARC.ARC stated that TymeBank was continuing to take on 100 000 customers per month or between 20000 and 30 000 customers each week.

Background of TymeBank

TymeBank’s history began when it was originally developed as part of aDeloitteConsulting project, funded by the telecommunications provider,MTN Group. It went on to become a stand-alone business in June 2012.

In 2015, the Commonwealth Bank of Australia (CBA) acquired 100% of Tyme and renamed the business TymeDigital by Commonwealth Bank SA.

On 28 September 2017, TymeDigital secured an operating license from the South African Reserve Bank (SARB). It was the first full banking license to be issued by the SARB since 1999.

In 2018, financial services company, ARC Imali-Madi (RF), bought a 10% stake in TymeDigital.

On 5 November 2018, African Rainbow Capital Financial Services Holdings – owned by South African entrepreneur Patrice Motsepe – obtained approval from theSouth African Reserve Bankto acquire CBSA’s 90% majority stake in the business.

TymeBank soft-launched on 5 November 2018, allowing consumers to open a basic transactional bank account at a limited number of kiosks inPick n Pay stores,as well as online.

Today, TymeBank is headquartered in Rosebank, Johannesburg, and the company does not have any physical bank branches and relies on an Android banking App, an Internet Banking site, and a partnership with two retail chains, Pick n Pay and Boxer, to host a national network of self-service kiosks that facilitate the account opening process.

The Prudential Authority of theSouth African Reserve Bank(SARB), granted permission for TymeBank to operate exclusively online on 28 September 2017.

Previously wholly owned by African Rainbow Capital Financial Services Holdings, on 10 June 2019 African Rainbow Capital (ARC) andEthos Private Equity, jointly announced an investment of R200 million by the Ethos Artificial Intelligence (AI) Fund and co-investors (jointly Ethos AI Fund) into Tyme Bank Holdings.

The transaction is subject to all conditions precedent being met. The investment by the Ethos AI Fund in TymeBank will result in the fund being an 8% shareholder in the bank

TymeBank Shares Growth Driver

TymeBank relies on its mobile app, debit card, internet banking site, and two retail stores (Pick’n Pay and Boxer) to host a national network of self-service kiosks that facilitate the account opening process.

TymeBank’s approach has made banking relatively easy for the public. According to the bank’s website, there is no need for filling out paper forms, no scanning, faxing, or emailing when opening an account; everything is done virtually.

While opening accounts with traditional banks may be a tedious process, according to the bank’s website, it only takes 5 minutes to open a TymeBank

TymeBank has been rated second best in the country on the Forbes list of the world’s best banks.

The Forbes list includes banks from 24 countries, and more than 40 000 customers were surveyed across the world for their opinions on their current and former relationships with banks.

Following its official launch in February 2019, TymeBank acquired one million customers by November of that year and 1.8-million customers by the end of May 2020, well ahead of schedule, ARC reported in a first-quarter update, with additional commentary on developments to May 30.

African Rainbow Capital Financial Services Holdings (ARC) currently owns a 73.08% stake in TymeBank’s registered controlling company, Tyme Bank Holdings Limited which was purchased from Commonwealth Bank of Australia.

TymeBank has embraced technology and partnerships to deliver innovative digital banking products to the market utilizing the Pick ‘n Pay and Boxer stores as a distributing network.

The Bank’s vision is to create long-term value for its people, customers, and shareholders by leveraging the bank’s core capabilities, with technology being at the forefront of this.

As already noted, since its public launch the Bank has amassed over 2 million customers. Consistent with its strategy, TymeBank operates responsibly in taking well-researched and -managed risks to grow the bank and create sustained top-tier shareholder value.

TymeBank’s purpose is to promote participation in the economy and to improve customer financial wellbeing by providing affordable access to financial services and products embedded with education and training.

TymeBank will primarily target middle to lower-income segments with a focus on underserved consumers and small businesses.

During the current financial year, the Ubuntu – Botho Investments Proprietary Limited Group, as majority shareholder, along with other shareholders, continued to provide adequate capital and funding to the group.

In addition, the Ubuntu-Botho Investments Proprietary Limited Group continues to give assurance that the group will have access to continued capital and funding to be able to settle its debts as they fall due and is able to continue business as a going concern for the period ending 31 October 2023.

TymeBank seeks to establish a culture of disciplined risk-taking that enables the bank to deliver long-term value for its people, customers, and shareholders.

Risk appetite is a central and essential element of TymeBank’s Enterprise Risk Management Framework (ERMF).

Risk appetite is managed through limits and tolerances based on prescribed regulatory requirements for TymeBank and internally set limits, as identified in respective policies.

TymeBank calculates its risk exposures arising from large exposures to a single obligor and groups of related obligors, expressed as a percentage of its qualifying capital requirement (QCR), as required by the Credit Concentration Framework and defined within the Credit Risk Policy (CRP).

These exposures are internally monitored on a daily basis and reported to the Asset and Liability Committee (ALCO) on a monthly and quarterly basis, as well as to the PA in line with regulatory requirements and the CRF.

The bank has not granted any large loans to a single obligor or group of related obligors. Credit risk arises from TymeBank’s current activities, which are limited to interbank placements, minimum reserving requirements, investing in Treasury Bills and Government Bonds for liquid asset requirements, and a small personal loans portfolio.

Whilst the majority of TymeBank’s lending, in the future, is anticipated to be relatively small retail exposures large credit exposure limits have been set.

This limits the risk of catastrophic loss through over-exposure due to the failure of a single borrower, or group of related borrowers and/or guarantors (obligors).

Whilst Credit Risk is generally the biggest risk in banking, it currently contributes less than the operational risk to the consolidated RWA, as the bank has currently extended limited credit to customers.

Credit risk is the potential loss arising from the failure of a customer or counterparty to meet their contractual obligation to TymeBank.

TymeBank has a Credit Risk Policy in place which defines how credit risk is effectively managed across the various credit offerings, which includes short to medium-term bank placements.

The Credit Risk Policy underpins the Credit Risk Framework and contains detailed parameters related to the management of credit risk. The Bank commenced testing personal loans in Q4 2019 and has an exposure of less than R6m to consumers in total.

This exposure has now been capped as lending was stopped entirely in April 2020 due to the expected impact of COVID-19 on consumers. The portfolio is however being managed according to Regulations and the TymeBank credit and provisioning policies.

As noted, the bank has unsecured credit-related exposure of less than R6m and has not provided any secured credit-related facilities, and currently has no off-balance-sheet credit exposure.

End-to-end credit risk systems and processes were built and enhanced during the testing phase but will be reviewed prior to extending further loans. There is no credit risk mitigation currently being considered in the calculation of the RWAs due to the current small exposure to customers, therefore pre- and post-mitigation exposures are identical.

TymeBank Investor Tip

While TymeBank shares are not yet listed, investors can buy shares in the bank’s parent company, African Rainbow Capital Financial Services Holdings (ARC), which trades on the Johannesburg Stock Exchange (JSE), under the stock symbol –AIL.

Data from the company’s 2020 financial analysis shows its intrinsic investment in the ARC Fund increased by 2.1% from R9.74 billion on 30 June 2019 to R9.95 billion at year-end.

The Intrinsic Net Asset Value (INAV) of the Company increased from R9.34 per share on 30 June 2019 to R9.54 per share on 30 June 2020 which also amounts to an increase of 2.1%.

It said that whilst this is significantly below the medium to the long-term hurdle rate of 16% per annum, it is indicative of and aligned to market performance in the current economic environment.

On 30 June 2020, the ARC Fund has an effective ownership interest of 35.18% in TymeBank, being 49.9% of the 70.5% interest that ARC Financial Services holds in TymeBank.

ARC Fund’s effective capital contribution to TymeBank was R374 million for the year ended 30 June 2020.

In November of the same year, ARC Financial Services injected an additional R750 million into TymeBank during the reporting period as part of the scheduled capital requirements for the new bank.

TymeBank, backed by billionaire Patrice Motsepe’s investment group African Rainbow Capital (ARC), has signed on 1.9 million customers of which 50% were active at the end of June 2020.

Launched in November 2018, the digital banking start-up said that it aimed to be at break-even by 2023, with a customer base of around 2.2 million

TymeBank, which makes up 8.3% ARC’s fund value (2019: 7.2%), is focused on banking the unbanked and under serviced in South Africa. ARC detailed the bank’s progress in a review of its financial results for the year ended June 2020.

It said that at the end of June 2020, the bank had onboarded 1.9 million customers, which is ahead of its business plan. “The bank is signing up between 3,000 and 3,500 customers per day, with half of the customers actively using their bank accounts.”

ARC said that the impact of Covid-19 on the bank has resulted in the delay in the rollout of its partnership with the Zion Christian Church (ZCC) as well as a change in its unsecured personal lending proposition.

“Responding to a significant change in market conditions, the bank’s management has introduced cost reduction measures, while also focusing on revenue diversification and partnerships activation.

“The progress to date, combined with the additional capital that has been injected, results in a fair value of R1.86 billion in ARC Financial Services at 30 June 2020 and therefore R927 million for the ARC Fund.”

ARC Financial Services injected an additional R750 million into TymeBank during the reporting period as part of the scheduled capital requirements for the new bank.

ARC Financial Services, which bought into Mercer Africa in January, has also concluded the ‘flip-up of its shareholding in Alexander Forbes, the operating entity Alexander Forbes Group Holdings, in which it holds 35.09%.

Meanwhile, the 4G roll-out of ARC’s Rain communications company resulted in 5 500 active sites live by the end of April. Rain has an infrastructure and services agreement with Vodacom that has enabled the growth of the 4G network. Vodacom roams on the Rain 4G network, providing a significant proportion of Rain’s revenue.

ARC’s investment in the Kropz plc. group hadfaced a number of challenges resulting in several delays in commissioning as well as the need for additional capital to see the Elandsfontein project through until commissioning. However, the latest metallurgical test work on the Elandsfontein phosphate mine, completed by Eriez, Pennsylvania, and JESA, Florida, had identified and confirmed a robust processing alternative to the previous flotation circuit.

ARC described the full-year financial resultsto May of JSE-listed Afrimat as solid and demonstrating consistent diversified delivery. It described Afrimat’s strong balance sheet as being key to navigating current operating environment uncertainty.

ARC stated that Fledge Capital had invested in privately held companies that demonstrated sustainable cash flow generation, with its key business being the vehicle trading platform We Buy Cars. Following earlier announcements that the competition authorities ruled against a possible transaction with Naspers, the business had a number of unsolicited offers from investment entities. Management would consider a transaction at appropriate price levels.

All in all, the company’s strong performance is set to deliver solid dividends and a strong share price for investors who choose to purchase shares today, securing a strong buy-in in 2020 and in the future. For more information regarding the company’s forecast, the buy or sell of shares, and the live price chart, visit the company’s online investor relations page.

TymeBank Major Shareholders

African Rainbow Capital Financial Services Holdings (ARC)

Sector

Financials

Industry

Banking

Sub-industry

Banking

How to buy TymeBank Shares

Click on the BUY THIS SHARE button.

Complete the registration form with the required information and submit documentation to verify your proof of Identity along with your proof of address.

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Conclusion

TymeBank is a legit forex trading company and is a fully regulated and transparent broker with high operational standards, low trading fees, superior service delivery, helping investors reach their objectives. It caters for all types of traders with different levels of experience.

Frequently Asked Questions

Can I buy TymeBank shares in South Africa?

Not directly, as of yet. But you can buys shares in the parent company, African Rainbow Capital Financial Services Holdings (ARC).

How to buy TymeBank shares

By simply opening a free account on SA Shares, or by clicking the “Buy this Share” button to get started.

What is the current share price?

By clicking on the link provided above, you can view the real-time ARC share price on the platform.

Is TymeBank a good share to buy?

Yes, African Rainbow Capital Financial Services Holdings (ARC) currently owns a 73.08% stake in TymeBank’s registered controlling company, Tyme Bank Holdings Limited which was purchased from Commonwealth Bank of Australia.

TymeBank is now likely to reach the two-million-customer target before August, well ahead of targeted December, said ARC.

ARC stated that TymeBank was continuing to take on 100 000 customers per month or between 20000 and 30 000 customers each week.

Can I buy TymeBank CFD through SA Shares?

Yes, you can.