Unicorn banking institution, TymeBank, experiences surge in deposits and escalates lending activities following achievement of billion-dollar valuation.
TymeBank's Strategic Growth Transforms South African Banking Sector
TymeBank, South Africa's first fully digital bank, has been making significant strides in the local banking industry. The bank, which reached 10.7 million customers by the end of December 2024, has been investing heavily in long-term strategic initiatives such as advanced data analytics and artificial intelligence.
These strategic investments are not limited to data analytics and AI. TymeBank is also leveraging its existing infrastructure and customer base for new lending products. A notable move in this direction is the joint venture with Sanlam, approved in early August 2025, aimed at transforming South Africa’s retail credit market.
The Sanlam-Tyme JVCo partnership combines TymeBank's large customer base (over 11 million accounts), digital delivery channels (stores, kiosks, apps), and Sanlam’s R5 billion loan book along with credit life insurance products and underwriting capabilities. This collaboration aims to expand TymeBank's lending portfolio, offering easily accessible personal loans integrated with insurance and additional financial products targeting South Africa’s underbanked population.
The strategy follows the success of Kenya’s KCB M-PESA platform, which provided microloans and savings access via mobile devices, reshaping lending in the African continent. TymeBank's approach is part of a broader strategy to capitalize on branchless banking laws and emerging unified markets within Africa, supporting TymeBank’s rapid growth and recent profitability milestone.
In addition to personal loans, TymeBank also plans to introduce new secured lending products, including vehicle finance. The bank's parent company, Tyme Group, includes the international arm Tyme Global.
ARC, TymeBank's majority shareholder, reported a high net promoter score for the bank, suggesting strong customer satisfaction. ARC also made a "conservative adjustment" of TymeBank’s valuation downward by R324 million to reflect the pricing of the Series D round. Despite this adjustment, TymeBank saw a net fair value gain of R27 million during the reporting period, despite a decrease in the overall value of Tyme Group.
Following a successful $250 million Series D funding round in December 2024, the reporting structure for TymeBank and Tyme Global was separated. However, no new information about the number of customers or income-generating transactions was provided. ARC, on the other hand, highlighted the bank's consistent monthly growth in income-generating transactions.
TymeBank's ongoing growth and strategic investments indicate a positive outlook in the South African banking sector, suggesting that the bank's innovative approach to digital banking and lending could reshape the industry in the years to come.
[1] Source: TymeBank press release, August 2025 [2] Source: TymeBank financial report, Q4 2024 [3] Source: TymeBank press release, December 2024
TymeBank's strategic investments extend beyond data analytics and AI, as they are also delving into venture capital by collaborating with Sanlam for a JVCo partnership, focusing on expanding the bank's lending portfolio, particularly personal loans and insurance products for South Africa’s underbanked population.
Additionally, TymeBank is exploring new avenues in business finance, planning to introduce new secured lending products such as vehicle finance, indicating a broader scope in financial investing.
