Tyme Bank, a South African digital bank aimed at the lower-income market, has reported a 7% growth in its customer base, reaching 10.7 million users by the end of December 2023.
The bank, which is the first digital bank in Africa to reach profitability, saw its total deposits substantially increase from $347.1 million in June 2024 to $380.2 million in December.
Net advances also grew from $104.6 million to $127.7 million, highlighting the bank’s expanding financial footprint. Deposits in local currency now stand at nearly R7 billion.
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“TymeBank is a leading digital bank that has shown consistently higher growth in customer onboarding compared to international peers. The bank also maintains one of the highest net promoter scores in the industry, reflecting strong customer satisfaction,” ARC states.
The ARC report acknowledged a decline in the group’s valuation following an investment by Sanlam, with its fair value dropping from $215.8 million in June 2024 to $189.9 million in December. However, the bank reported a net fair value gain of $1.4 million for the period under review.
Despite short-term profitability pressures, Tyme Bank continues to invest in cutting-edge technologies, including artificial intelligence and advanced data analytics, to enhance customer engagement and drive long-term growth. The bank uses AI tools to enhance its service offerings, particularly in assessing customers’ creditworthiness. By analyzing consumer behavior, such as grocery spending patterns, it provides more accurate and inclusive lending services, further driving financial inclusion in underserved communities.
Leveraging technology to drive growth and operational efficiency, the bank is making rapid progress toward sustainable monthly profitability. Notably, following the successful completion of its Series D capital raise in December 2024, the bank remains focused on expanding its lending portfolio to further strengthen its revenue-generating capabilities. Recall that in December last year, the digital bank officially joined Africa’s prestigious unicorn club following its successful $250 million Series D funding round, which valued the company at $1.5 billion.
Founded in 2019, Tyme Bank aimed to disrupt South Africa’s traditional banking landscape by focusing on the underbanked segment. The Neobank operates a unique hybrid digital banking model, integrating online services with physical service points. Its primary focus is on building digital banks in emerging markets, providing products such as checking and savings accounts, debit cards, buy now, pay later services and cash advances. The company currently serves 15 million customers across South Africa and the Philippines.
Since its launch, it has established a substantial physical presence through over 1,000 kiosks and 15,000 retail points across the country, helping expand its customer base by offering accessible and affordable banking services. In addition to this physical footprint, the bank has prioritized small business financing as a key growth driver.
TymeBank ascribes its achievement to its unique hybrid approach of combining digital channels with its, walk-in kiosks, made possible by long-standing, strategic partnerships with retailers, such as Pick n Pay, Boxer, and TFG, and loyal customers.
Despite reaching unicorn status last year, the back is not showing signs of slowing down, as it continues to strengthen its position in South Africa’s banking landscape. Interestingly, CEO Karl Westvig had earlier revealed that the bank has succeeded in offering its services that cater to the poorest communities in South Africa while maintaining financial sustainability.
Looking ahead, the company is targeting a New York Stock Exchange listing by 2028, with plans for a secondary listing in South Africa, cementing its position as a leader in emerging market fintech innovation.