TymeBank says it signed up 250,000 people in two months – but it needs another 1.8 million to break even
- Digital-only bank TymeBank said it has signed up 250,000 customers since February.
- It said between 3,000 and 4,000 customers join the service daily.
- TymeBank, however, still has less than 1% of South Africa’s total banking customers.
- Visit the Business Insider SA homepage for more stories.
TymeBank - South Africa’s newest bank - on Wednesday said it has signed up its 250,000th customer since launching in February.
The digital-only bank with no monthly fees said its growth has exceeded expectations.
It is, however, still 1.85 million off the 2.1 million active customers it needs to break even - which it expects will only happen in 2022.
Read: You may soon get credit from TymeBank - and 5 other things to know about Patrice Motsepe's bank
TymeBank’s CEO Sandile Shabalala said currently between 3,000 to 4,000 customers join the bank every day, and expects that number will soon climb to 5,000 a day.
“As our kiosk distribution in Pick n Pay and Boxer stores increases alongside our national marketing efforts, we can expect this momentum to continue so that we are consistently signing-up over 100 000 customers a month,” Shabalala said in a statement.
Despite the rapid growth, TymeBank’s 250,000 customer base is still tiny compared to FNB’s 8.15 million active customers, Absa’s 8.65 million, Nedbank’s 7.65 million, Standard Bank’s 8.12 million and Capitec’s 11.4 million.
The percentage of the market each South African bank represents:
He said 78% of the sign-ups took place at one of the 624 in-store Pick n Pay or Boxer kiosks. The rest of the clients were signed up via its website.
The best performing sign-up stores were the Quagga Centre’s Pick n Pay in Pretoria and Boxer stores in Thembisa, Lenasia, Alexandra and Noordstreet.
Shabalala said of the 250,000 new customers they’ve gained, 26% are aged between 36 and 45 and 14% between 46 and 55.
“We’re delighted to see how many of our customers are above the age of 36, as we believe that these are people who already have an existing bank account, who see the value we offer and have taken the decision to give us a shot,” Shabalala said.
Receive a single WhatsApp every morning with all our latest news: click here.
Also from Business Insider South Africa:
- Here’s how much it costs to open a Chicken Licken, Nando’s or KFC outlet
- A South African agency is helping Qatar promote itself ahead of the 2022 Fifa World Cup
- How a SA CEO used 'scheduling' to build an advertising giant
- This is what the CEO of a SA tech giant wants to see on your CV: brave life decisions
- We asked two top astrologers what the stars say about the 2019 elections – here’s their predictions