The South African Reserve Bank has issued an operating licence to TymeDigital by Commonwealth Bank SA.
JOHANNESBURG – A new bank is set to launch in South Africa.
This is after the South African Reserve Bank (SARB) issued an operating licence to TymeDigital by Commonwealth Bank SA.
The bank said it would begin to test payments integration into the banking system and meet final regulatory requirement for the public switch on of the bank.
This is the first licence issued to a new bank by the SARB since 1999.
Commonwealth Bank of Australia (CBA) Group CEO, Ian Narev, said: “This is an important milestone for CBA. We believe that we have an opportunity to contribute to the financial wellbeing of South Africans, through a business model that uses the potential of new technologies to make life better for customers. We aim to build a sustainable business in South Africa, and to work in an open and cooperative way with the SARB and other relevant regulators.
“This is a key milestone in our plans to launch a full service digital bank and disrupt banking in South Africa. We will offer South Africans the ability to open accounts and transact securely, within minutes. Through our innovative technology and financial education we aim to get more people using banking services to enhance their lives and increase economic participation,” added TymeDigital by Commonwealth Bank SA CEO, Sandile Shabalala.
The bank will target emerging middle class and middle class consumers and SMME’s.
“We expect to market our first banking products to the public in the second quarter of 2018 but will start to engage consumers about their financial well-being in the coming months. We will be running pilots in November and April next year in preparation for the our first product launch,” said TymeDigital spokesperson, Thoraya Pandy.
The bank will have no branches and has a partnership with Pick n Pay where clients will be able to register for products and do cash-in and cash-out at stores.
African Rainbow Capital, owned by billionaire Patrice Motsepe has a 10 per cent stake in the bank.
“Our investment is an essential part of our plans to build an empowered, pan-African financial services group. Supporting technology which can be used to provide access to financial
services is one of the ways we plan to broaden and deepen financial inclusion in South Africa
and other emerging markets,” said Motsepe.
The bank is scheduled to market its first banking product to the public by the middle of 2018.