TymeBank strikes deal with Retail Capital
TymeBank has struck a deal with Retail Capital shareholders to acquire 100% of the SME-focused funder in order to roll out a new business banking offering, a move that will pit it against rival offerings from SA’s traditional big four lenders, as well as Sasfin, Capitec and African Bank.
The deal, which is subject to regulatory approval by both the Prudential Authority and the Competition Commission, will combine TymeBank’s rapidly growing deposit base and extensive retail footprint with Retail Capital’s expertise in small business funding, reports Business Day.
TymeBank’s business banking offering, which is essentially a transactional business account aimed at SMEs, has more than 100 000 customers.
‘We believe that owner-managed small businesses are probably the most chronically underserved and undercapitalised segment of the SA economy,’ TymeBank CEO Coen Jonker said.
‘We believe that we have a shot at becoming one of the leading business banks in the country built around the capability that Retail Capital brings to the market.’
TymeBank, which is backed by Patrice Motsepe’s African Rainbow Capital, has racked up more than 5m customers since its launch in February 2019 and is now adding an average of 150 000 customers a month.
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