TymeBank, controlled by Africa’s first Black billionaire, Patrice Motsepe, plans to expand its international footprint with a fresh launch in Indonesia in late 2024. This move intends to strengthen the bank’s position as a growing financial institution in emerging regions, with an emphasis on Southeast Asia.
This expansion will be TymeBank’s third foray into the Southeast Asian market. The bank previously opened in the Philippines in October 2022 and Vietnam in January 2024. TymeBank purchased Savii, a salary-based lender, to broaden its product offering and increase profitability in the Philippines.
TymeBank’s approach entails launching innovative financial products for high-net-worth individuals and forming strategic local partnerships to satisfy regional needs.
TymeBank sees huge growth prospects in Indonesia, which has more than 60 million SMEs and a largely underserved population. The bank, which has successfully financed $100 million to 60,000 small firms in South Africa, intends to repeat its success in Indonesia by offering its Merchant Cash Advance product to SMEs. This approach mimics its policy in Vietnam, and it will proceed without acquiring a full banking licence.
Coen Jonker, chair of Tyme Group, stressed the profitability of Indonesia’s small business lending industry. “By focusing on brand building without a full banking license, we can scale more quickly and reduce infrastructure costs,” Jonker told me. Despite a $42 million loss in 2023 during its first full year in the Philippines, TymeBank hopes to be profitable by 2025, with South African operations expected to break even by the end of 2024.
TymeBank, which is partially controlled by ARC Financial Services Holding through Ubuntu-Botho Investments (UBI), has grown significantly since its establishment in 2019. The bank’s “phygital” concept, which combines digital and physical touchpoints through strategic partnerships, led to a customer base topping 8 million in 2023.
TymeBank is on track to have 10 million users in South Africa and 5 million in the Philippines by October 2024. TymeBank’s effective market strategy is highlighted by its rapid expansion in the Philippines, which took only two years to achieve what took South Africa six years. Southeast Asia remains a primary emphasis due to its good regulatory environment and development prospects, with future expansion into Africa also being considered.
