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<p data-beyondwords-marker="00be2f05-a9ed-40aa-8519-f3fd68587952"><a href="https://bank.tymedigital.co.za/" data-type="URL" data-id="https://bank.tymedigital.co.za/" target="_blank" rel="noopener noreferrer nofollow">TymeBank</a> has revealed that it achieved its first month of profitability in December 2023, a remarkable feat less than five years after its launch in February 2019. Positioned as the first digital bank to break even in South Africa, this milestone underscores TymeBank’s rapid ascent in the global digital banking landscape.</p>
<p data-beyondwords-marker="84fbcc39-26b2-49fd-a1b5-abc38c8c0abe">“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,” the bank said in a media release on Tuesday.</p>
<p data-beyondwords-marker="777c852f-16a4-468e-af28-25f27b553b6a">Coenraad Jonker, CEO of TymeBank, expressed pride in the achievement, emphasizing, “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.”</p>
<div class="wp-block-image">
 <figure class="aligncenter size-full" data-beyondwords-marker="3bd8d76a-a288-413b-b49c-6f6198b09496"><img width="793" height="549" src="https://technext24.com/wp-content/uploads/2019/06/Meet-TymeBank-South-Africas-Digital-Bank-Looking-to-Disrupt-the-Traditional-Banking-System.jpg" alt="Meet TymeBank, South Africa's Digital Bank Looking to Disrupt the Traditional Banking System" class="wp-image-26464" srcset="https://technext24.com/wp-content/uploads/2019/06/Meet-TymeBank-South-Africas-Digital-Bank-Looking-to-Disrupt-the-Traditional-Banking-System.jpg 793w, https://technext24.com/wp-content/uploads/2019/06/Meet-TymeBank-South-Africas-Digital-Bank-Looking-to-Disrupt-the-Traditional-Banking-System-300x208.jpg 300w, https://technext24.com/wp-content/uploads/2019/06/Meet-TymeBank-South-Africas-Digital-Bank-Looking-to-Disrupt-the-Traditional-Banking-System-768x532.jpg 768w, https://technext24.com/wp-content/uploads/2019/06/Meet-TymeBank-South-Africas-Digital-Bank-Looking-to-Disrupt-the-Traditional-Banking-System-640x443.jpg 640w, https://technext24.com/wp-content/uploads/2019/06/Meet-TymeBank-South-Africas-Digital-Bank-Looking-to-Disrupt-the-Traditional-Banking-System-380x263.jpg 380w, https://technext24.com/wp-content/uploads/2019/06/Meet-TymeBank-South-Africas-Digital-Bank-Looking-to-Disrupt-the-Traditional-Banking-System-550x381.jpg 550w, https://technext24.com/wp-content/uploads/2019/06/Meet-TymeBank-South-Africas-Digital-Bank-Looking-to-Disrupt-the-Traditional-Banking-System-760x526.jpg 760w, https://technext24.com/wp-content/uploads/2019/06/Meet-TymeBank-South-Africas-Digital-Bank-Looking-to-Disrupt-the-Traditional-Banking-System-600x415.jpg 600w" sizes="(max-width: 793px) 100vw, 793px">
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<p data-beyondwords-marker="91411319-bc3e-4bd9-a8b9-3ef340f186b8">The success is attributed to TymeBank’s unique model, seamlessly blending digital channels with in-store kiosks at major retailers. This innovative approach has allowed the bank to consistently acquire approximately 150,000 customers monthly.</p>
<p data-beyondwords-marker="17f0bff1-605e-45c6-b110-69438496d1d6">As reported by Businesstech, TymeBank chairperson, Thabani Jali thanked investors for their continued faith, stating, “To appreciate their investment, we are committed to building a sustainable future that delivers a solid return on investment.”</p>
<p data-beyondwords-marker="e04538b5-66bf-4009-b99b-6deeace55bdb">ARC founder and chairman Dr Patrice Motsepe highlighted over four years of dedicated effort and investments, stating, “TymeBank’s unique proposition continues to digitally disrupt and transform the banking sector.”</p>
<p data-beyondwords-marker="b0a241e8-45f1-49c4-9e09-e2895b3ab70e">CEO Jonker sees this achievement as aligning with the bank’s goal of becoming one of the top three retail banks in the country. In his words, “We are confident that our proven track record of success positions us well to achieve this audacious aim in the next few years.”</p>
<h5 id="tymebanks-expansion-and-evolution" data-beyondwords-marker="d4675c68-8270-45e9-955f-7dd66a7319b3"><strong>TymeBank’s expansion and evolution</strong></h5>
<p data-beyondwords-marker="647e0182-357d-4914-8294-c00a031a9c68">In a report by <a href="https://founderssauce.com/2021/03/16/the-story-of-tymebank/amp/" data-type="URL" data-id="https://founderssauce.com/2021/03/16/the-story-of-tymebank/amp/" target="_blank" rel="noopener noreferrer nofollow">Founderssauce</a>, the acronym TYME, traces its roots to June 2012 when a team within Deloitte Consulting, led by Coen Jonker, Tjaart van der Walt, and Rolf Eichweberas, spun out as a mobile money remittance operator. With funding from MTN, TYME aimed to empower retailers with technology, enabling them to offer local remittance services at a more affordable rate than traditional banks.</p>
<p data-beyondwords-marker="d9468eee-7a3b-47c9-b61d-2156ca6a75f9">In November 2012, TYME achieved a significant milestone by signing the South African Bank of Athens (now GroBank) as its banking partner and Pick n Pay as a customer. The collaboration focused on leveraging mobile money as a conduit for remittance within South Africa, with Pick n Pay and Boxer Superstores playing key roles in the implementation.</p>
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 <figure class="aligncenter size-full" data-beyondwords-marker="de414809-5872-4e7e-a468-9d91aa0a57d9"><img width="800" height="400" src="https://technext24.com/wp-content/uploads/2024/01/47D68AA4-0C1B-4EBD-800C-CF580417B506.png" alt="TymeBank hits profitability after 4 years, becoming first South African digital bank to do so" class="wp-image-224911">
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<p data-beyondwords-marker="bf4ffc3b-e176-450f-bc7d-cfcf9738fd63">TYME’s inception marked a pioneering effort in the mobile money and remittance space, setting the stage for its evolution into a digital banking powerhouse and, eventually, reaching the milestone of profitability in December 2023.</p>
<p data-beyondwords-marker="294a6966-fa26-48da-81f9-b56ffbc53b57">In 2013, TYME embarked on an expansion drive by signing a partnership with Ebank to develop a low-cost digital bank in Namibia. This initiative aimed at leveraging TYME’s expertise in building a core banking system to bring innovative financial services to Namibian customers. The collaborative effort resulted in the launch of the digital bank in 2014.</p>
<p data-beyondwords-marker="518d627a-bc3b-4300-96bd-5283369cae58">However, TYME’s trajectory took a notable turn in January 2015 when it was acquired by The <a href="https://www.finextra.com/newsarticle/26996/commbank-buys-south-african-tech-outfit-tyme" data-type="URL" data-id="https://www.finextra.com/newsarticle/26996/commbank-buys-south-african-tech-outfit-tyme" target="_blank" rel="noopener noreferrer nofollow">Commonwealth Bank of Australia </a>(Commbank or CBA) for AU$40 million (~R365 million). This acquisition prompted TYME to divest its <a href="http://channelpostmea.com/2015/03/01/tyme-sells-stake-in-namibias-ebank/" data-type="URL" data-id="http://channelpostmea.com/2015/03/01/tyme-sells-stake-in-namibias-ebank/" target="_blank" rel="noopener noreferrer nofollow">38.3% stake in Ebank to PointBreak</a>, an investment company in Namibia.</p>
<p data-beyondwords-marker="75d152a6-8fa4-438a-b329-5ea6bf9d1e0a"><strong>Read More: <a href="https://technext24.com/2023/05/23/tyme-raises-77-8m-in-series-c-funding/" data-type="URL" data-id="https://technext24.com/2023/05/23/tyme-raises-77-8m-in-series-c-funding/" rel="noopener noreferrer nofollow">Tyme secures $77.8m in pre-Series C funding to continue global expansion</a></strong></p>
<h5 id="tymes-transformative-journey-from-tymedigital-to-tymebank" data-beyondwords-marker="cd5853ea-7132-4efc-b485-fbecbe19a4f0"><strong>Tyme’s transformative journey: From TymeDigital to TymeBank</strong></h5>
<p data-beyondwords-marker="ad0cbb56-77fa-4eef-a643-312135c1eca7">Commencing with Commonwealth Bank’s acquisition of Tyme for its talented team and advanced core banking platform, the vision was to leverage existing technology for the creation of a retail bank. Despite facing two and a half tumultuous years, marked by the pursuit of a full banking license from the South African Reserve Bank (SARB), Tyme persevered.</p>
<p data-beyondwords-marker="c3642b23-344e-4e95-b205-36e35da9202d">During this period, partnerships with Pick n Pay were fortified, leading to a money transfer agreement in May 2016 and a significant 10-year distribution deal in February 2017. Tyme demonstrated innovation by introducing proprietary kiosks.</p>
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 <figure class="aligncenter size-full" data-beyondwords-marker="1ef83d9e-35b8-4c88-9ba6-0b13bc22a7de"><img width="800" height="400" src="https://technext24.com/wp-content/uploads/2024/01/C5530CE0-B105-48F8-B794-8703FA14B978.png" alt="TymeBank hits profitability after 4 years, becoming first South African digital bank to do so" class="wp-image-224909">
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<p data-beyondwords-marker="97fbe909-7838-435c-9826-7ca13d438859">However, challenges emerged in February 2017 as MTN <a href="https://www.news24.com/fin24/tech/companies/mtn-axes-agreement-with-australian-bank-20170216" data-type="URL" data-id="https://www.news24.com/fin24/tech/companies/mtn-axes-agreement-with-australian-bank-20170216" target="_blank" rel="noopener noreferrer nofollow">terminated</a> its partnership with Tyme citing “lack of commercial viability.” Subsequently, Tyme severed ties with both MTN and the Bank of Athens. Co-founder Rolf, heading partnerships, resigned, and a number of developers departed for <a href="https://www.outsurance.co.za/" data-type="URL" data-id="https://www.outsurance.co.za/" target="_blank" rel="noopener noreferrer nofollow">OUTsurance</a>.</p>
<p data-beyondwords-marker="de22fc55-8896-4efa-8704-749a60d1ec4c">Undergoing a transformative phase, TymeDigital secured investment from South African Billionaire Patrice Motsepe’s African Rainbow Capital (ARC), acquiring a 10% stake. In 2018, as Commonwealth Bank began retreating from international markets to refocus on Australasia, ARC seized the opportunity to purchase Commbank’s 90% stake. The transaction concluded in September 2018, leading to the rebranding of TymeDigital to TymeBank, with its inaugural customers signing up in November of the same year.</p>
<p data-beyondwords-marker="65126bbe-c6d3-4c60-8220-94d44f59a04c"><strong>Read More: <a href="https://technext24.com/2019/06/20/meet-tymebank-south-africas-digital-bank-looking-to-disrupt-the-traditional-banking-system/" data-type="URL" data-id="https://technext24.com/2019/06/20/meet-tymebank-south-africas-digital-bank-looking-to-disrupt-the-traditional-banking-system/" rel="noopener noreferrer nofollow">Meet TymeBank, South Africa’s Digital Bank Looking to Disrupt the Traditional Banking System</a></strong></p>

TymeBank hits profitability after 4 years, becoming first South African digital bank to do so

Technext.ng

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