DURBAN – Patrice Motsepe’s listed investment holding company, African Rainbow Capital (ARC), said TymeBank is continuing to make inroads in the banking sector after it exceeded its expectations by signing up 1 million customers by the end of November.
As a result, the digital bank has set itself the target of signing up 2million customers by the end of December next year.
ARC said in an update on Friday that TymeBank, which launched on February 26, had acquired 1million customers by November 23.
“This milestone is slightly ahead of its schedule, as the bank originally expected to achieve this by the end of December 2019. The bank is now working towards on-boarding 2million customers by December 2020,” the group said.
TymeBank is one of the fastest-growing digital banks in the world and is signing up about 100000 customers a month, or between 20000 and 30000 customers each week.
The group said of the 1million customers who opened bank accounts, about 400000 were active customers.
“The average number of transactions per active customer is consistently increasing. This growth rate has resulted in TymeBank being one of the fastest-growing digital banks at this stage of its life cycle when measured against the leading digital banks across the world,” the group said.
TymeBank is piloting a personal loan product and a low-cost bank account for small and medium businesses.
“The bank’s customer analytics show that more than half its customers earn a salary of less than R5000 a month, and 45percent of customers are older than 35,” the group said.
TymeBank has an Everyday transactional account and a GoalSave savings account. It said its customers have deposited about R500million with the bank. The average GoalSave balance per customer is R4500.
“The most common transaction type has been card swipes, which shows that customers enjoy earning smart shopper rewards. Following this, cash deposits at till points in Pick * Pay stores are the most common transaction type. This demonstrates that cash on hand is still prevalent within the bank’s target market segment,” the group said.
ARC shares closed 0.24percent higher at R4.15 on Friday.