Financial services firm TymeBank reached its first month of profitability in December 2023, less than five years since launching in February 2019.

“We are proud of our achievement, particularly when you consider that globally, less than half of the top 100 digital banks are profitable. A recent study stated that less than 5% of all neobanks worldwide had reached profitability,” says TymeBank CEO Coenraad Jonker.

“Additionally, of those that are in the black, most have taken a lot longer to become profitable, with notable examples including Latin America’s Nubank, which took eight years to become profitable, and London-based Monzo, which took seven years.

“Having achieved our first month of profitable operations in a significantly shorter timeframe is a South African success story that our 8.5-million customers can share with pride,” he comments.

The bank's team has remained focused and committed to its mission of providing South Africans with affordable, accessible and quality banking services. This purpose has clearly resonated with consumers, given its rapid growth, high levels of customer satisfaction and the successful introduction of a range of products and services, Jonker says.

“We are excited about what lies ahead as we build on this momentum to continue offering great value to our customers. We believe that we are now perfectly aligned with our goal of becoming one of the top three retail banks in the country.

“This ambitious target is our next measurable benchmark for success, and one that will require strategic focus across all areas of our business. However, we are confident that our proven track record of success positions us well to achieve this audacious aim in the next few years,” he adds.

One of the bank's success factors is the continued confidence of its shareholders, as evidenced by the Tyme Group’s successful capital raise in 2023 despite a tepid economic landscape, as well as the consistent innovation and launch of a range of products and services, including the most affordable banking offering in South Africa.

“TymeBank’s board of directors and leadership team extend their gratitude for our investors’ continued faith in our vision and their commitment to our collective success. We are committed to building a sustainable future that delivers a solid return on investment,” says TymeBank chairperson Thabani Jali.

“TymeBank’s landmark achievement comes after more than four years of dedicated effort, strategic investments, and an unwavering commitment to the business’s core mission to offer quality banking services to all South Africans. Having attracted more than 8.5-million customers, TymeBank’s unique proposition continues to digitally disrupt and transform the banking sector,” adds TymeBank major shareholder African Rainbow Capital founder and chairperson Dr Patrice Motsepe.

“As the business evolves, we are seeing it gradually appeal to more affluent consumers who appreciate its unrelenting innovation, customer-centric transparency and accessibility,” he says.