TymeBank International secures $180m investment from Tencent and CDC Group

TymeBank International, one of the fastest-growing online banks globally, has secured its position in South Africa and in the Philippines with capital investments from overseas multinational conglomerates, the bank said in a statement on Tuesday.  

Subsequently, the share price of African Rainbow Capital Investments — TymeBank South Africa’s biggest shareholder — increased by 0.92% to R5.50 on the JSE. 

The company has secured a “digital bank licence” in partnership with the Filipino conglomerate Gokongwei Group, enabling the possibility of further international expansion, the bank said.  

“Tencent is a world-leading internet and technology company based in China, and CDC Group is the UK’s development finance institution and impact investor,” said the statement.

TymeBank said the monetary investment will allow it to expand its digital infrastructure to reach more customers and assist it in expanding the business into additional markets where the CDC Group has a presence. 

The investment by Tencent and the CDC Group is a strong indicator of TymeBank International’s success, and an optimistic sign for the banking sector in South Africa, the statement read. 

“TymeBank International will definitely grow bigger after the investment,” said Chantal Marx, head of External Research and Content at First National Bank Wealth and Investments.

The most notable expansion will be in Southeast Asia, she said.  

“TymeBank South Africa will also grow, as it is already doing well in South Africa, with a steady client base, which will also help African Rainbow Capital Investments grow its JSE position,” Marx said.  

“TymeBank South Africa currently holds R2.8-billion in deposit balances, all from consumers and sole proprietors, and has taken in R33-billion in gross deposits from the public since the onset of the pandemic in March 2020,” said the statement. 

TymeBank is the first bank in South Africa to fully operate off a “cloud-based network,” and the first bank to be granted a commercial banking licence since 1999. DM/BM