It’s Tyme for a new way of banking.TymeBank, South Africa’s first digital bank, is set to disrupt the industry with a proposition that introduces simple, accessible and affordable banking.
Designed to meet the needs of underserved South African customers, the bank’s vision is to create a platform that stimulates economic participation and facilitates broader financial inclusion.
TymeBank is owned by African Rainbow Capital (ARC) Financial Services Holdings (Pty) Ltd, a company within Patrice Motsepe’s Ubuntu-Botho Investments stable, making it South Africa’s first majority black-owned bank.
It has formed a long-term strategic partnership with the Pick n Pay Group, allowing its customers to bank where they shop, at Pick n Pay and Boxer stores around the country. Once it completes its roll-out, the partnership will give TymeBank approximately 730 points of presence where customers can open accounts (the bank has over 500 kiosks in the market today), and over 10 000 till points across 1 500 stores where customers can withdraw and deposit money.
The TymeBank EveryDay transactional account is quick and easy to open. Customers can open a fully FICA-compliant bank account and receive their personalised Visa debit card at a TymeBank kiosk in under five minutes, or they can open an account with limited functionality on the TymeBank website. No documents are required to open an account – customers just need their South African ID number and cellphone. The FICA process is completed through the capture and verification of biometric and other data at the kiosk. Once the kiosk issues customers with their Visa debit card, they can transact straight away.
When signing up, customers can automatically join the Pick n Pay Smart Shopper programme and get all the benefits of one of the largest rewards programmes in the country. In a South African first, TymeBank customers earn Smart Shopper points everywhere they use their debit card, not just in Pick n Pay stores.
The TymeBank account comes with a unique savings tool called GoalSave. It attracts no fees or penalties and is simple to use. Customers can create up to 10 savings goals, name them, and earn as much as 10% interest per annum.
For more information, visit our website at www.tymebank.co.za.
Among his many qualifications, Sandile has a Bachelor of Administration from the University of KwaZulu-Natal and a Master of Business Leadership degree from UNISA and completed the Executive Management Program at Harvard Business School. Of his 27 years in banking, he spent seven as Managing Executive of Business Banking at Nedbank before joining Tyme as Deputy CEO in 2016. He was appointed CEO of the bank in May 2017. Sandile is a devoted family man to his wife and three children. He is also a keen golfer, an advocate of the spirit of ubuntu, and looks forward to playing a key role in disrupting the traditional banking landscape. Sandile Shabalala
Chief Executive Officer
Tauriq has an MSc from the University of Cape Town. He has spent the past 10 years building and scaling digital banking businesses in South Africa. He played a key role in the inception of Tyme, as well as its subsequent sale to Commonwealth Bank of Australia in 2015 and to African Rainbow Capital in 2018. Tauriq was appointed to his current position in 2018. As Deputy CEO, he drives cross-functional execution and has line accountability for strategy, partnerships, data science, innovation, stakeholder engagement and operations. Tauriq is a family man and takes an active role in serving the needs of abandoned, abused and orphaned children. Tauriq Keraan
Deputy Chief Executive Officer
Owen SorourChief Risk Officer
Owen has a BCom from the University of the Free State and a Master of Business Leadership degree from UNISA. He spent more than 20 years in the employ of two of the largest South African retail banks, ultimately specialising in the retail credit environment. He has held senior positions at Standard Bank, ABSA and TransUnion LLC. Owen was appointed CRO at Tyme in 2016. He sees risk as a partner that helps the business achieve its goals by applying fit-for-purpose risk frameworks that focus on the key drivers. Outside of the office, he is a family man and avid golfer who loves watching sport and travelling.
Amal DesaiChief Financial Officer
Amal qualified as a chartered accountant in 1999 and holds an Honours BCompt/CTA from UNISA. He has over 20 years’ experience in financial and business performance management. He also has extensive experience in banking, including retail banking, home and vehicle loans, credit card and banking operations. He previously worked for Standard Chartered Bank, the Barclays Africa Group and Standard Bank. Amal joined Tyme as CFO in 2017. Since then he has been involved in building the banking proposition as well as developing business strategies and aligning them to financial outcomes. On a personal level, his family comes first. To keep fit, he enjoys road running, and is a passionate follower of international cricket.
Ayn BrownChief Human Resources Officer
Ayn has a BA in Psychology from North-West University and completed the Advanced Management Program at Duke University. She held various roles in human resources and organisational development at Nedbank. She was Executive Head of Human Resources for Business Banking and later Executive Head of Human Resources for the Africa Division. Ayn joined Tyme as CHRO in 2017. She has 25 years’ banking experience, and is passionate about unlocking greatness in others. She is a wife and mother as well as a photographer, traveller, coach and music lover, and a Director of the Topsy Foundation.
Cheslyn JacobsHead: Sales and Service
Cheslyn has a BCom in Industrial Psychology from the University of the Western Cape and a postgraduate diploma in Business Management from the University of Pretoria’s Gordon Institute of Business Science (GIBS). He previously worked at Standard Bank and Deloitte. In 2012, he joined Tyme as Manager: Sales and Distribution and later became National Operations Manager at Tyme Infield. He was appointed to his current position in 2019, which is his 11th year in the banking industry. Cheslyn is a family man and as passionate about financial inclusion as he is about sport.
Heidi StoffbergHead: Compliance
Among her many qualifications, Heidi has a Bachelor of Law, a postgraduate diploma in Forensic and Investigative Accounting from the University of Pretoria, and a postgraduate diploma in Compliance Management from the University of Johannesburg. In her 17 years in banking, she held positions at FirstRand Bank and Mercantile Bank, where she was Head of Compliance Management. She joined Tyme in 2018. Heidi loves spending time with her husband and daughter. She also loves to travel and, when time permits, play a round of golf.
Dieter BothaChief Information Officer
Dieter has a BCom Accounting and Commercial Law from Rhodes University, and 17 years’ banking experience. He is the former Global Head of Transactional Services (IT) at Standard Bank South Africa. Most recently, Dieter was a Global Client Advisor at Oracle in Australia with a focus on two of the four big banks and involvement in the fintech community. Prior to joining the team, he enjoyed a corporate and entrepreneurial career. He was appointed as CIO in 2018. Dieter is married and has two sons. In his spare time he enjoys running and the odd game of golf.
Luisa MazinterChief Marketing Officer
Luisa has a BA in English from the University of Cape Town and a master’s in Business Administration from the University of Pretoria’s Gordon Institute of Business Science (GIBS). She has over 27 years’ experience as an entrepreneur, media owner and strategy consultant in the marketing and advertising industry. She sits on a global panel of final round judges for the US Direct Marketing Association’s prestigious International ECHO Awards and is the Board Chair of the Mobile Marketing Association (MMA) SA. She was appointed CMO at Tyme in 2017. She has a passion for good books, good music and good people, is hooked on Pilates and loves to travel.
Amrita ArjunHead: Internal Audit
Amrita has a BCom Accounting from the University of KwaZulu-Natal and is a qualified CIA, CCSA and CISA. Her career in internal audit spans over 15 years and she has experience in many areas, including insurance, asset management, corporate investment banking, operational risk, wealth and compliance. She previously held positions at Nedbank, including Senior Audit Manager: Operational Risk and Compliance. Amrita joined Tyme in 2018. She is an advocate of the digital era and using it to enhance both the internal audit and combined assurance functions within the company. Amrita loves tryingnew recipes, spending time with her husband and two children, and travelling to new places around the world.
Coenraad JonkerCo-founder and Chairman of Tyme
Coenraad Jonker is the co-founder and CEO of Tyme. He holds an MBA and two law degrees with honours, and has more than 23 years’ experience in banking, law and professional services. In 2000, he became CEO of Edward Nathan Corporate Law Advisers and also joined Nedcor Investment Bank’s Executive Committee. In 2005, he joined Standard Bank as Director of Community Banking, where he led a new strategy to extend banking to underserved customers. Six years later, he moved to Deloitte as a partner. In June 2012, Coenraad launched the fintech start-up Take Your Money Everywhere (TYME), which was acquired by the Commonwealth Bank of Australia (CBA) in 2015. In 2017, he was appointed Group Executive at CBA, and at the end of 2018, led the buyout of the Tyme business. Since January 2019, Coenraad is CEO of the Tyme business in Hong Kong and Chairman of TymeBank in South Africa.
Johan van ZylCo-CEO of ARC
Johan van Zyl holds a PhD in Economics from Vista University and a DSc in Agriculture from the University of Pretoria (UP). He worked in academia and as a consultant to the World Bank before being appointed Vice-Chancellor of UP in 1996. In 2001, he became CEO of Santam. Two years later, he was appointed Group CEO of Sanlam Limited. Under his strategic leadership, Sanlam became a top-performing financial services institution and a dynamic emerging market financial services provider. Johan is currently a Non-Executive Director of Sanlam Limited and various other listed as well as unlisted companies, the CEO of Ubuntu-Botho Investments and Co-CEO of ARC.
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African Rainbow Capital
TymeBankInvestor DayJohan van ZylFebruary 2019
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Contents
1. Organisational Structure
2. ARC Financial Services Strategy
3. ARC acquisition of TymeBank
4. Competitor view
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Organisational Structure
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ARC Financial Services Strategy
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ARC investment inTymeDigital and restructured entities
Situation as at 30/06/2018ARC Fin HoldCo owns 10% stake in TymeDigital; BEE partner of CBA (90%)
Carrying value of the 10% stake: R317m (carried at cost)
Financed as follows: Cash payment of R56m; vendor financing by CBA of R271m
Situation as at 31/12/2018CBA exited TymeDigital; business restructured into 2 entities -- TymeBank (SA) & Tyme Limited (HK)
TymeBank:New shareholding: ARC Fin HoldCo (73%); Founders (20%); Staff trust (7%)
ARC repaid loan (and some interest to CBA); also injected R200m into TymeBank
Tyme Limited:New shareholding: Founders/investors (57%); ARC (33%); Staff trust (10%)
Business raised US$6m against a pre-money value of US$24m; ARC followed its rights (US$2m)
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Why will TymeBank win?
Two major advantages make TymeBank a winner:
• Substantial cost–savings relative to other players on transactional services, with massive scalability due to it being a digital bank
• Ease of doing business
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Pricing a competitive advantage for TymeBankMonthly bank fees compared on a low transaction profile (including cash)
Source: UBS
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Pricing a competitive advantage for TymeBank
Monthly bank fees compared on our medium transaction profile (digital-only)
Source: UBS
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Thank you
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Digital Banking It’s About Tyme
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Where we’ve come from Coen Jonker: Co-founder and Chairman
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Barriers to financial services adoption can be distilled down into one word: access
Physical access“Inconvenient or impossible”
Emotional access“Too complex and not trusted”`
Financial access“Too expensive”
TymeBank is empowering it’s customers to overcome these barriers through a simple, transparent and easy to understand digital banking proposition
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Our StrategySandile Shabalala: Chief Executive Officer
© TymeBank 2019. All Rights Reserved© TymeBank 2019. All Rights ReservedNote: (1) Business transactional and savings accounts. (2) Infield teams operating as in-store Ambassadors at kiosks, nomads to engage with customers at mobile locations and agents to assist small businesses. (3) Digital point-of-sale device.
Consumer SME
Consumer Products SME Products
Personalaccount
GoalSave
Unsecuredterm loan
Creditcard
MoneyTransfer
Third party products
Businessaccount1
Paymentacceptance
Working capital loan
Third party Products
Merchantadvance
Channels
Apps &web
Call centre & chatbot (Max)
Kiosk Retail till point In-field2 TymePOS3
TymeBank delivers its value proposition to the consumer and small business markets through two distinct platforms
Partnerships
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Our Value PropositionCheslyn Jacobs: Head Sales and Service
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TymeBank’s transactional account is roughly half the cost of South Africa’s most affordable bank
Solidarity: 17 transaction profileTymeBank: Fee Structure
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How we will winTauriq Keraan: Deputy CEO
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TymeBank’s consumer proposition in South Africa will be focused on LSM 5 to 7, representing 21 million potential customers
Total addressable market size = 21m
Core target:LSM 5, 6, 7
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TymeBank’s footprint
Onboarding Cash in/out
TymeBank 120 730 14 300Standard Bank 48 000 639 6 200ABSA 41 000 698 9 600FNB 46 000 628 4 700Nedbank 31 000 680 4 200Capitec 14 000 832 2 800
StaffPoints of presence
2
3
• TymeBank customers can deposit cash at any PnP/Boxer tillpoint (14,300 tillpoints) & also withdraw at ~40,000 Saswitch ATM’s or any Retail tillpoint supporting Visa cashback
• Competitor Cash in/out points include both owned ATM’s & branches; a subset of owned ATM’s support cash deposits
• TymeBank services its customers with 120 permanent staff members & 500 Ambassadors, supported by 50,000 PnP & Boxer staff members
• TymeBank kiosks are live at >500 PnP & Boxer stores today, and will soon cover all 730 stores
1 3
1
2
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Key partnerships supported by analytics-led direct marketing enable TymeBank to acquire customers en masse
The PnP and Boxer networks and existing customer bases along with roaming teams will drive large scale customer acquisition
• Distribution across 730 stores with 500 ambassadors across the store network
• Strong, trusted brand• Strong metro and rural presence
• Out of the 7m loyalty customers Tyme• Rich customer data• Captive audience
• Money remittance customers spread national-wide
• Existing relationships with TymeBank
• Nationwide placed outside of PnP and Boxer stores in high footfall areas
• Multipurposed capability
~730 stores
500k base
~10 roaming teams
~7m
• Pensioners using a costly payments solution, opportunity for bulk payments solution
• Lower end of the segment –opportunity to address transactional and savings needs
• Provides workman compensation –opportunity to pay into TymeBankaccount as an initial hook
The ARC ecosystem will enable TymeBank to accelerate acquisition outside of the PnP and Boxer channels
~1mcustomer
base
~1mcustomer
base
~1.8mcustomer
base
Asset manager
Insurer
Insurer
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Initial Propositional Draws
Send Money: Viral account opening, convenient digital remittance that allows retailer based withdrawals
Cash to Card: Digitising cash usage through Smart Shopper points incentives
GoalSave adoption: Discipline of saving, gamification
Salary Switch: Primary account usage
Lending: Big data risk scoring alleviating “thin-file” problems
Level of engagement
Time
Customer adoption curve
Ambassador (physical): Face-to-face engagements, breaks trust barriers, digital literacy and drives product awareness
Analytics (digital): Nudging customer behaviour with intelligent engagement via app, web, SMS, and email
Continuous Engagement Tools
Customer experience, cost, and differentiated use cases offer the customer a compelling reason to make TymeBank their primary bank with ambassadors and analytics-led digital engagement driving adoption.
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EveryDay and GoalSave balances continue to grow at a steady rate, an indication of the attraction to the underlining proposition
TymeBank is exceeding plan in both acquisition and adoption with ~70K customers signed up with minimal marketing
WCustomer acquisition continues to grow with modest below-the-line marketing, which leads us to believe that above-the-line marketing
campaign will result in significant customer growth
0
20 000
40 000
60 000
80 000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15Week
Customers
Weekly newCumulative
R0m
R10m
R20m
R30m
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15Week
Balances
EveryDayGoalSave
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Our Go To Market PlanLuisa Mazinter: Chief Marketing Officer
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Our unique communication territory lies at the cross-section of our three brand pillars
Human Potential Access
Financial Wellbeing
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Easy. Open an account in under 5 minutes.With just your fingerprint, no documents required.Open an account online or at your nearest Pick n Pay or Boxer
Affordable. No monthly fees.Many transactions are FREE. Pay-as-you-go-banking.Simple and transparent pricing structure
Rewarding. Bonus Smart Shopper Pointswherever you shop and DOUBLE points if you swipe and pay with our yellow card inside Pick n Pay
Unique. As much as 10% Interest on your savings after 3 months.No minimum amount required / No restrictions, fees or penalties.Protect your money with GoalSave/ Instant access to your savings
Inspiring. A bank that believes in, and backs, you and your potential
Our CVP
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As a disruptive market entrant we are taking a “challenger” approach
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As a disruptive market entrant we are taking a “challenger” approach
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Content Marketing delivers on our Financial Wellbeing pillar
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Our retail partners launched our in-store branding 2 weeks before our ATL launch
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On 24 February 2019 we launched our brand campaign Above The Line
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In Conclusion
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Why TymeBank is ideally positioned to disrupt the South African banking sector
No legacy.
An operating model geared towards rapid innovation.
Strategic partnerships providing a distribution, cost, and data advantage.
A digital platform and business model that enable opportunities beyond banking.
The right team.
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Q&A