African Rainbow Capital (ARC), a fully owned black-owned and controlled company focusing on the South African and African financial services industry, revealed it had received all regulatory approvals necessary to acquire TymeDigital bank from the Commonwealth Bank of Australia. The company is looking to add strategic investors capable of accelerating the growth of the bank.
Tyme, which has a number of new entrants hot on its heels, including Michael Jordaan’s Bank Zero and Discovery Bank, will now be perfecting its operating processes and rounding out its product offering before undertaking a more aggressive roll-out to its partner, Pick n Pay stores.The bank will be renamed TymeBank when it officially launches to the public.
Co-CEO of ARC, Johan Van Zyl, said ARC will be seeking to include two or three strategic investors in the near future. He noted that “but consistent with our operating model, we will look to dilute our shareholding to investors we think can help us scale the business. These include investors that have access to client pools, and investors interested in lowering the cost of banking fees”.
ARC said it will split the business into two parts. TymeBank will comprise the highly anticipated bank offering, while the technology underpinning the core banking system will be housed in its own entity, where it will be marketed to interested parties.
According to Van Zyl, “the two are intertwined. If we can demonstrate TymeBank works and is successful, this will greatly aid the marketing of the technology. There is a lot of interest in the technology as it can significantly bring down costs for a bank”.