South African digital bank TymeBank says it is set to reach the 6 million customer mark in December, as the group completes its acquisition of business lender and fintech group, Retail Capital.
The acquisition is now complete after TymeBank was granted all the necessary regulatory approvals. The bank has acquired 100% of Retail Capital for R1.5 billion.
Retail Capital is a fintech company that provides funding to small and medium-sized businesses, and work is now underway to integrate the organisations.
In terms of the acquisition, Retail Capital will become a division of TymeBank before the end of December 2022, the group said. Retail Capital’s CEO Karl Westvig will join Tyme Group’s executive committee and will be responsible for TymeBank’s business banking and lending offerings.
TymeBank CEO Coen Jonker said the acquisition – a first for the bank – marks TymeBank’s move to branch out into working capital funding for small businesses.
“We look forward to making business banking and access to capital more affordable for South Africa’s small business owners and entrepreneurs,” he said.
There are no immediate plans to rebrand Retail Capital, which will continue to operate as usual, the bank said.
“We want to maintain commercial momentum so we will focus on making the integration as seamless as possible, while meeting all the regulatory and reporting requirements of a single business.”
Westvig will head up TymeBank’s Business Banking division, which already has over 120,000 customers.
TymeBank business customers benefit from zero monthly bank fees, free debit card and online purchase transactions, as well as free bulk payments, among other benefits. Business customers also have access to TymePOS, a mobile point-of-sale app that turns an NFC-enabled cellphone into a tap-and-go payment device.
Retail Capital will now lower the barriers to accessing working capital for SMEs adding to the more than 50,000 business owners in South Africa who have already received over R7 billion in working capital.
“There is an incredible synergy between Retail Capital and TymeBank, starting with the ethos to provide affordable banking to consumers and businesses. The cultural fit is seamless, and the power of Tyme’s technology, distribution and deposits and Retail Capital’s funding capabilities makes this a very natural partnership.
“Small businesses, in particular, require support to grow and employ more people, leading to a more prosperous future for us all,” said Westvig.