Digital bank TymeBank says it is set to bolster its business banking offering with a series of new initiatives, key of which is the proposed acquisition of Retail Capital, a fintech company that provides funding to small and medium-sized businesses in South Africa.
The acquisition, which is subject to regulatory approvals, would see Retail Capital become a division of TymeBank and the foundation of the bank’s expanded business banking offering.
Access to Finance
The deal would see Retail Capital’s funding expertise and TymeBank’s deposit base and operations combined to serve a broader customer base. TymeBank believes being able to channel funding efficiently to business owners in South Africa is critical to the expansion of the historically underserved small business sector.
“This acquisition will enable TymeBank to expand its offering to entrepreneurs to include working capital finance. Retail Capital has acquired significant risk management experience 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 optimised to a significant degree for small-business funding.
“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 broader economy,” said TymeBank CEO Coen Jonker.
TymeBank’s current Business Banking offering, which already has over 100,000 customers, includes a transactional business account that can be opened in under five minutes, zero monthly bank fees, free debit card and online purchase transactions and free bulk payments, among other benefits.
Retail Capital lowers the barriers to funding for SMEs through an easy, three-step online application process.
Tyme Group, through its multi-country digital banking presence, will also enable Retail Capital’s international expansion into other markets.
TymeBank’s business customers stand to benefit from the launch of a new offering, TymePOS, a mobile point-of-sale app that turns an NFC-enabled cellphone into a tap-and-go payment device.
The bank said that TymePOS offers the best pricing in the market for merchants of this size. It also has next-day settlements for merchants – versus the industry standard of seven days.
The app is available for download on the Google Play Store, and it will take a TymeBank Business Banking customer just two minutes for app on-boarding. Customers will then receive a merchant ID to start processing card payments within 24 hours.
Another new service being offered is TymeTrybe – a financial community platform that equips business owners with a comprehensive range of business tools, accredited courses and other educational services as well as access to networking opportunities
This will be a key feature of TymeBank’s expanded Business Banking offering, the group said.
Other new services
The bank said it also has other services in the pipeline, including a web-based e-commerce app that makes it easy for small merchants to sell their wares on Facebook and Instagram.
A delivery service will be included as part of the offering, named ‘SellOnSocial’.
“The small business sector in this country is vital to economic development and job creation and deserves all the help it can get, particularly given the immense hardship of the last few years. We believe our revitalised business banking offering is what small business owners want, need and deserve,” said Jonker.