TymeBank, a South African digital bank, has secured USD110 million in private capital from investors in the UK and the Philippines, for growth expansion and launching of a digital bank in the Philippines.
The listed investment vehicle of South African billionaire Patrice Motsepe established TymeBank in 2019 after securing the first commercial banking licence to be issued in South Africa.
Since then, TymeBank has grown rapidly and now has around 2.8 million customers, most of them are onboarded via physical kiosks. They offer customers a transactional bank account with zero or low monthly fees and a savings product.
The investors for this round include Apis Growth Fund II, and Gokongwei-owned JG Summit Holdings, one of the biggest conglomerates in the Philippines.
Following the deal, Apis and JG Summit will own around 15% and 5% respectively.
The digital bank now plans to apply for a digital bank license and links up with JG Summit.
According to Jojo Malolos, chief executive of JG Summit’s venture capital arm, TymeBank is a key innovator and they can bring their model into the ecosystem.
Coen Jonker, TymeBank’s co-founder and executive chairman said in a statement that the future of digital banking is undoubtedly a multi-country future because the most competitive players are able to scale their technology across borders.
For them, Philippines represents the best fit in terms of their business and operating model for expansion.
The coronavirus pandemic enhanced the need for digital banking. Therefore, regulators are opening up banking to digital players, encouraged by a boom in mobile connectivity and the prospect of tech firms offering low-cost financing services across Asia.
According to Coen, TymeBank is also looking to get a digital banking license in Malaysia, where Bank Negara has issued a policy framework for online-only banks and plans to issue up to five licenses.
Jonker said they are in the last stages of closing in on an exclusive partnership with a consortium.