TymeBank launched its credit card offering earlier this year and this week’s announcement cements its business offering. The the acquisition, which is subject to regulatory approvals, will combine Retail Capital’s funding expertise and TymeBank’s deposit base of more than five million customers, including 108,000 corporate banking customers.
TymeBank chief executive Coen Jonker said the acquisition allows the bank to expand its current business banking proposition 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 financing,” he says.
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.
In line with TymeBank’s fast digital systems, Retail Capital offers financing to SMEs through a simple three-step online application process. Over the past 10 years, Retail Capital has already provided over 43,000 business owners in South Africa with over R5.5 million in working capital, making it one of the largest providers of working capital. SME funds.
“We have a long history of supporting SMEs (with) affordable financing that helps their business grow. Now…we can expand the offering,” says Retail Capital Managing Director Karl Westvig.
Tyme Group, which plans to launched soon in the Philippines and applied for a license in Pakistanwill also enable the international expansion of Retail Capital into other markets.
The business banking offering will see the launch of two new offerings: TymePOS, a mobile point-of-sale application that turns an NFC-enabled phone into a touch-based payment device, and a business tools platform, TymeTrybe.
TymePOS offers next-day settlement for merchants in an industry where seven-day settlement is the norm. The app is available for download from the Google Play Store, and it will only take a TymeBank merchant bank customer two minutes to onboard the app. Customers will then receive a merchant ID and can begin processing card payments within 24 hours.
Merchants using TymePOS will pay an R1 fee for every R50 transacted and TymeBank merchant account holders pay no monthly fees. Fees are capped at R1 per R50 for transactions up to R10,000, and for higher amounts the merchant pays a 2% fee on the value of the transaction.
This is a competitive rate, according to the table below:
TymeTrybe, which will go hand-in-hand with First National Bank’s business coaching platform, Fundaba, will provide entrepreneurs with accredited courses and other educational services, as well as access to networking opportunities.
By the end of November last year, more than 192,000 entrepreneurs had accessed the Fundaba learning platform. Available as a learning path or troubleshooting help in five languages, Fundaba includes videos, podcasts, articles and downloadable business planning templates.
Jesse Weinberg, co-head of the SMB segment at FNB, says gathering data over the past year has helped the bank identify popular topics with high engagement rates. These included writing a business plan (with a downloadable template), preparing a business for funding, identifying skills and gaps, finding a unique selling point and product pricing.
Fundaba was launched in November 2019, just before the Covid shutdowns. “Despite the challenges posed by the lockdown, and perhaps because of them, we’ve seen increased interest and adoption of these solutions by new and existing entrepreneurs looking to improve their business knowledge,” Weinberg says.
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TymeTrybe is currently still in the pilot phase and will be available from September this year. The platform was built by Tribe Fintech, a global fintech company that has partnerships with several leading organizations including global tech giant Meta, Wits Business School, BrownSense and SMEasy as contributors to the platform.
An innovative web-based e-commerce application is also in the works. It will allow small traders to sell their products on social media platforms such as Facebook and Instagram. A delivery service – SellOnSocial – will be included as part of the offer.
“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.
The only thing TymeBank seems to be missing now is a home loan offer. BM/DM