Tyme Group’s Digital Bank Achieves Profitability in Record Time

Tyme Group’s Digital Bank Achieves Profitability in Record Time

by January 16, 2024

Tyme Group, known for GoTyme in the Philippines, has announced its annualised revenue run rate reaching approximately US$160.7 million in 2023.

This financial milestone is a testament to the remarkable success of its flagship South African operation, TymeBank, which now stands as the world’s fastest profitable standalone digital bank, the group claims.

This places the group’s TymeBank among the rare cases in the digital banking sector globally, with a recent study by global consultancy Simon-Kucher revealing that less than 5% of digital banks worldwide achieve profitability.

TymeBank’s rapid ascent in the industry is further highlighted by its classification as one of the world’s fastest-growing digital banks. Since its inception in February 2019, TymeBank has amassed a customer base of 8.5 million, coupled with a 30% growth in its SME lending portfolio in 2023 alone.

In comparison, most digital banks experience a significantly longer journey to profitability. Notable examples include Brazil’s Nubank, which took eight years, and the UK’s Monzo, requiring seven years to reach this milestone.

Tyme Group’s expansion in the Philippines is equally noteworthy. GoTyme Bank, a joint venture with the Gokongwei Group, has swiftly garnered 2.3 million customers in just 14 months, outpacing the growth of Tyme’s South African operation.

This rapid expansion in the Philippines is underlined by the country’s expected surge in neobank adoption, projected to reach 32% of the population by 2027, a substantial increase from the 13% in 2023.

With a global customer count that now stands at 10.8 million, Tyme Group attributed its success in standalone digital banks to its innovative approach in emerging markets. This includes a ‘high-tech/high-touch’ strategy that merges digital channels with physical kiosks and banking ambassadors, in collaboration with national retailers.

Moreover, Tyme aims to offer the most affordable banking services, maintaining a cost structure at approximately 10% of traditional incumbents. The group states that continuous innovation in technology, products, and customer experience has been key, marked by several industry ‘firsts’ introduced by TymeBank.

Investor confidence in Tyme Group also remains robust, evidenced by a US$77.8 million pre-Series C fundraising in 2023. Key investors include Dr Patrice Motsepe’s African Rainbow Capital, Tencent, British International Investment, Apis Growth Fund II, and Norrsken22.

Coenraad Jonker

Coenraad Jonker

Co-Founder & Executive Chairman of Tyme Group, Coenraad Jonker, expressed pride in the group’s expansion in emerging markets, highlighting the significant growth opportunities in these regions. He stated,

“Our ambition is to become one of the top three retail banks in every market we enter, beginning with TymeBank in South Africa. Our proven track record of rapid growth, consistent product innovation and ‘firsts’, investor confidence and, now, profitability put us on track to achieve this audacious goal.”



Featured image credit: Edited from freepik