14 November 2018
The start-up, now owned by African Rainbow Capital, unveils its game-changer …
TymeBank, which Patrice Motsepe’s African Rainbow Capital bought from the Commonwealth Bank of Australia in August, has unveiled its first set of products, centred on a transactional bank account, called EveryDay, with no monthly fees. This is a first in the South African market.
It began signing up clients for its new digital bank earlier this month and says “the money we save by not having branches benefits” customers, as “it allows us to charge you a lot less for your banking services. Which means no monthly fees, many day-to-day banking transactions are free and low charges for other transactions.”
The catch – for now – is that this is TymeBank’s soft launch and there are currently only six kiosks where you can open an account (at PnP stores in Rosebank, Kensington, Bedfordview and Kenilworth, and Boxer outlets in Alexandra and West Street, Durban).
However, the bank says it continues to roll out kiosks and will eventually have in excess of 700. These kiosks are Wi-Fi hotspots, allowing customers to download the TymeBank app for free.
The fee structure is wonderfully simple, with just a handful of actual fees for its EveryDay account:
Account opening fee
|Cash withdrawals at PnP, Boxer||Free|
|Cash at till at other major retailers||R2|
|Cash at other banks’ ATMs||R8 per R1 000|
|Deposit at PnP, Boxer||R4|
|EFT payment to TymeBank account||Free|
|EFT payment to other bank account||R2|
There are limits on transactions and balances, which are relatively low until you provide certain information, including biometric data and a residential address, to the bank. Certain wallet-type services offered by rival financial services providers have similar strict limits under the Financial Intelligence Centre Act (Fica).
|‘Just met’||‘Getting to know you’||‘Good friends’|
|Customer profile||Customers who have opened an account digitally||Customers who have captured their biometric info at a kiosk (and are issued a Visa debit card which links to PnP’s Smart Shopper programme)||Customers with a verified residential address|
|Daily spend||R2 000||R10 000||R100 000|
|Monthly spend||R40 000||R100 000||R1 000 000|
|Profile balance||R20 000 (combined for EveryDay account and GoalSave)||R50 000 (combined for EveryDay account and GoalSave)||R500 000 (combined for EveryDay account and GoalSave; maximum GoalSave balance is R100 000)|
|Payment||R2 000||R10 000||R100 000|
|Prepaid purchase||R1 000||R1 000||R1 000 (including send money)|
|Debit card purchase||N/A||R10 000||R10 000|
|Cash withdrawal||R2 000||R3 000||R3 000|
|Cash deposit||R3 000||R3 000||R3 000|
The bank is entirely paperless and claims a customer is able to open an account in less than five minutes. The TymeBank Visa debit card is automatically linked to PnP’s Smart Shopper rewards programme and customers earn Smart Shopper points whenever they use it to pay (not just at PnP). Purchases at PnP earn double Smart Shopper points using the TymeBank card.
TymeBank has rethought savings as well, and with its GoalSave tool, you are able to set 10 goals and save money in each GoalSave. Think of these as mini savings pockets or accounts. Interest earned increases over time, depending on how long money stays in each GoalSave. If you select the 10-day notice period option for withdrawals, bonus interest will be earned (at a 0.111x multiplier). At this time, the maximum interest rate is 10%.
|No of days after money is added to a GoalSave||Annual interest rate|
|Bonus: If you give 10 days’ notice before withdrawing after 90 days||10%|
Bloomberg reports that the bank signed up 1 800 clients in the first week of its “unofficial” launch.
With a free account and such simple pricing, expect a lot more customers to sign up as the bank rolls out its presence in PnP and Boxer stores across the country. TymeBank is going to completely shake up the market – for the better – especially at the lower end.