Media reports indicate that TymeBank is committed to raising investment funds worth at least $100 million to expand its operations in the domestic market, which in this case is South Africa.

The CEO of the mentioned financial institution, operating only in the virtual space, Coen Jonker announced the lender’s desire to become the fastest-growing bank in the specified country. Also in this context, TymeBank’s intention to join the top three in terms of such indicators as the number of its customer base and return on equity was noted.

Coen Jonker says that the experience of initial interaction with investors prompted the bank to consider the possibility of raising large amounts of financing. If the relevant goal is achieved, the lender will be able to accelerate the pursuit of further attractive opportunities that are currently being observed in the industry.

TymeBank started its operations by offering consumers a debit card without fees and bank accounts for transactions. These solutions were aimed at attracting the interest of potential customers.

It is worth noting that currently in South Africa about 11 million people, which is 20% of the local population, are either not users of banking services at all, or receive insufficient appropriate services.

In 2022, TymeBank acquired fintech loan company Retail Capital. Currently, the financial institution also offers its clients health insurance and funeral insurance.

Customers can open accounts in TymeBank through online mode or at self-service kiosks in retail stores located throughout South Africa.

Kokkie Kooyman, director and portfolio manager at Denker Capital says that the mentioned financial institution has achieved significant results in opening accounts among the low-income demographic. Also in this context, it was noted that in the relevant market segment, the main task is not only to encourage people to own accounts but also to make these channels of service provision the major ones.

It is worth noting that there is currently a problem of so-called banking deserts in the United States. In this case, it means the regions of the country where there are no conveniently located financial institutions for customers. Broadband is also often unavailable in the mentioned regions, which significantly complicates digital and conventional banking services. At the same time, the availability of mobile channels is gradually expanding in the United States, which allows consumers to receive services from financial institutions even in places where there are no physical branches of lenders.

Currently, digital and mobile banking is growing in popularity among consumers in the United States. The corresponding tendency is particularly intense in credit unions. Approximately 90% of top-performing credit unions recorded an increase in satisfaction with the mobile apps of financial institutions last year.

The prospects for increasing the popularity of banking services provided through virtual channels of interaction with consumers are more than significant. What can be called the logic of the global digitalization process is evidence in favor of further scaling of the relevant solutions. Virtual space is gradually becoming a new dimension of life, in which many functional processes are actively implemented, including the provision of financial services.

As we have reported earlier, Goldman Sachs Alternatives Raises Loan Partners Fund.