TymeBank targeting South Africa’s middle class

TymeBank’s incoming CEO, Karl Westvig, believes that the business’ increased maturity in product offerings since its launch means it can now target a more affluent segment of the South African market.

Founded five years ago, TymeBank initially only catered to South Africa’s lower-income segments; however, it now plans to appeal to the country’s middle class.

Westvig told Business Times that to approach this market, TymeBank must ensure the product offering is valuable to the mass affluent segment and use distribution channels that “plug into that.”

He mentioned they’ve had discussions with partners who can help create this value offering, including The Foschini Group (TFG).

According to Westvig, these value propositions will be in the form of short-term lending products, including personal loans, buy now, pay later offerings, and business loans.

He believes that although the personal loan market is well-served, partnerships, like TymeBank’s with TFG, will provide access to a host of new customers and create significant growth potential.

Westvig says that the company is not focussing on short-term product expansion but on products that will realise growth over the medium and long term, such as the unsecured lending space, transactions, and savings.

He also mentioned that the bank is working on a strong credit card offering for the global group, as this will provide growth in the medium term.

Westvig will replace TymeBank’s current CEO, Coenraad Jonker, who stepped down to focus on his role as executive chairperson of Tyme Group.

Jonker will step down on 1 October 2024. TymeBank chair Thabani Jali says Jonker will prepare the group for its next growth phase in preparation for a public listing.

Jonker had served as CEO for just over two years and led the company to its milestone of reaching profitability in December 2023, making it the first digital bank in South Africa to break even.

A recent study found that only 5% of neobanks worldwide have managed to do this.

“We believe the time is right to redeploy key executives into positions that will best serve both TymeBank and the Group,” said Jali.

“The board has full confidence that Karl can build on Coenraad’s accomplishments and help us to further grow market share in South Africa.”

Karl Westvig, incoming TymeBank CEO

Westvig currently serves as TymeBank’s chief executive for retail and business banking, and he will bring a proven track record to his new role.

According to TymeBank, Westvig has a wealth of leadership, lending, and fintech expertise. He has built a legacy of strong teams and successful startups.

“Firstly, a huge thank you to Coenraad for his exemplary leadership — successfully steering the bank to break even during an extremely tough economic period while also firmly positioning TymeBank as a credible alternative to legacy banking in the country is truly inspiring,” said Westvig regarding his appointment.

“I am excited about taking up this assignment at such a pivotal time for the business.”

He added that his priority will be realising TymeBank’s goal of being a top-three bank regarding customer satisfaction, customer numbers, and shareholder returns.

Jonker said TymeBank wants to list the business publicly in 2028.

“I am grateful for what we have managed to achieve together at TymeBank. At a group level GOTyme Bank is already the fastest growing bank in the Philippines with three million customers,” he said.

“We have now entered Vietnam with our first product and aim to be live in Indonesia by the end of the year.”

TymeBank is currently valued at nearly $1 billion (R18.2 billion), and it is one of the fastest-growing digital banks in the world. It is also the first digital bank to reach profitability in Africa.