By Edlyn Cardoza
- Corporate banking
TymeBank, one of South Africa’s fastest growing digital banks, is set to bolster its business banking offering with new initiatives. Key to this is the proposed acquisition of Retail Capital, a FinTech company that provides financing to small and medium-sized enterprises (SMEs) in South Africa. The acquisition, subject to regulatory approvals, would see Retail Capital become a division of TymeBank and the basis for the bank’s expanded corporate banking offering.
The deal would see Retail Capital’s funding expertise and TymeBank’s depository base and operations combined to serve a broader customer base. TymeBank believes that effectively channeling finance to business owners in South Africa is key to growing the historically underserved small business sector.
“This acquisition will allow TymeBank to expand its offering to entrepreneurs to include working capital financing. Retail Capital has gained significant experience in risk management over the past decade and through different economic cycles. They have an experienced team in place and their risk models and operational processes have been battle tested and optimized to a large extent for small business finance,” said Coen Jonker, CEO of TymeBank. “Together, we look forward to providing access to innovative solutions to ensure business owners can fuel their growth, drive job creation and contribute to the wider economy.”
Both entities have a lot to offer, with an evolving suite of digital solutions that make it easier to do business in a challenging environment. TymeBank’s current business banking offering includes a transactional business account that can be opened in less than five minutes, no monthly banking fees, free debit card and online shopping transactions and free bulk payments, among other benefits.
Over the past five years, Retail Capital has established itself as a leading FinTech partner, providing businesses with instant access to financing through integrated solutions. They will continue to support the economy through innovative financing technology and strong partnership relationships.
The two activities are also complementary and synergistic economically. Retail Capital’s product offering to small businesses requires a flexible source of low-cost capital, which TymeBank’s deposit base can provide. Through its digital banking presence in several countries, Tyme Group will also enable the international expansion of Retail Capital into other markets.
“Retail Capital has a long history of supporting SMEs by providing access to affordable financing that helps their business grow. Now, with this acquisition by TymeBank, we will be able to expand the offering, giving SMEs the opportunity to grow with financing that works on their terms. Retail Capital already powers many industry-leading acquiring, retail and payments partners to support their SMB customers and the combination with TymeBank will further enhance this offering to our partners’ customers,” said Karl Westvig, CEO of Retail Capital. “Retailer Capital and TymeBank both have the customer in mind, and we view this strategic move as a positive one that will greatly help all business owners in South Africa.”
TymeBank corporate customers are benefiting from the launch of a new offering, TymePOS, a mobile point-of-sale application that turns an NFC-enabled mobile phone into a touch-based payment device. As a softpos solution, TymePOS offers in-market pricing for merchants of this size. TymeTrybe, a financial community platform that offers business owners a full suite of business tools, accredited courses and other educational services, as well as access to networking opportunities, will be a core feature of TymeBank’s expanded business banking offering.
“It’s exciting to know that visionary banks like TymeBank, along with our partners like Meta, Wits and SMEasy, share our vision to take a more holistic look at the incredible people at the heart of our business communities. “This is a major milestone on our journey to create community-driven B2B banking services for all sizes and types of SMEs around the world,” said Mo Harvey, Founder and CEO of Tribe Fintech.
“This country’s small business sector is vital to economic development and job creation and deserves all the help it can get, especially given the immense challenges of the past few years. We believe our revitalized business banking offering is what small business owners want, need and deserve,” Jonker said.