Digital bank TymeBank said yesterday it was acquiring Retail Capital, a fintech company that provides funding to small and medium-sized businesses in South Africa, for an undisclosed amount as it expands its business’s banking offering.
It will also see Retail Capital’s lending expertise being combined with TymeBank’s deposit base and operations to serve a broader customer base.
The proposed transaction, which is subject to regulatory approvals, will see Retail Capital become a division of TymeBank and forming the foundation of its expanded business banking offering.
Shares in JSE-listed African Rainbow Capital Investments, which holds the majority shareholding in TymeBank, were flat on the news in intraday trade yesterday.
TymeBank CEO Coen Jonker said: “This acquisition will enable TymeBank to expand its offering to entrepreneurs to include working capital finance.
“Retail Capital has acquired significant risk management experience over the past decade and through different economic cycles. They have an experienced team in place and their risk models and operational processes have been battle-tested and optimised to a significant degree for small-business funding.
“Together, we look forward to providing access to innovative solutions to ensure business owners can fuel their growth, drive job creation and contribute to the broader economy,” he said.
TymeBank’s current Business Banking offering, which already has more than 100 000 customers, includes a transactional business account that can be opened in under five minutes, zero monthly bank fees, free debit card and online purchase transactions and free bulk payments, among other benefits.
“Both Retail Capital and TymeBank have the customer front of mind, and we see the strategic move as a positive one that will greatly assist all business owners in South Africa,” said Retail Capital CEO Karl Westvig.