it’s tyme for a ne...it’s tyme for a new way of banking. tymebank, south africa’s first...

It’s Tyme for a new way of banking.TymeBank, South Africa’s first digital bank, is set to disrupt the industry with a proposition that introduces simple, accessible and affordable banking.

Designed to meet the needs of underserved South African customers, the bank’s vision is to create a platform that stimulates economic participation and facilitates broader financial inclusion.

TymeBank is owned by African Rainbow Capital (ARC) Financial Services Holdings (Pty) Ltd, a company within Patrice Motsepe’s Ubuntu-Botho Investments stable, making it South Africa’s first majority black-owned bank.

It has formed a long-term strategic partnership with the Pick n Pay Group, allowing its customers to bank where they shop, at Pick n Pay and Boxer stores around the country. Once it completes its roll-out, the partnership will give TymeBank approximately 730 points of presence where customers can open accounts (the bank has over 500 kiosks in the market today), and over 10 000 till points across 1 500 stores where customers can withdraw and deposit money.

The TymeBank EveryDay transactional account is quick and easy to open. Customers can open a fully FICA-compliant bank account and receive their personalised Visa debit card at a TymeBank kiosk in under five minutes, or they can open an account with limited functionality on the TymeBank website. No documents are required to open an account – customers just need their South African ID number and cellphone. The FICA process is completed through the capture and verification of biometric and other data at the kiosk. Once the kiosk issues customers with their Visa debit card, they can transact straight away.

When signing up, customers can automatically join the Pick n Pay Smart Shopper programme and get all the benefits of one of the largest rewards programmes in the country. In a South African first, TymeBank customers earn Smart Shopper points everywhere they use their debit card, not just in Pick n Pay stores.

The TymeBank account comes with a unique savings tool called GoalSave. It attracts no fees or penalties and is simple to use. Customers can create up to 10 savings goals, name them, and earn as much as 10% interest per annum.

For more information, visit our website at www.tymebank.co.za.

Among his many qualifications, Sandile has a Bachelor of Administration from the University of KwaZulu-Natal and a Master of Business Leadership degree from UNISA and completed the Executive Management Program at Harvard Business School. Of his 27 years in banking, he spent seven as Managing Executive of Business Banking at Nedbank before joining Tyme as Deputy CEO in 2016. He was appointed CEO of the bank in May 2017. Sandile is a devoted family man to his wife and three children. He is also a keen golfer, an advocate of the spirit of ubuntu, and looks forward to playing a key role in disrupting the traditional banking landscape. Sandile Shabalala

Chief Executive Officer

Tauriq has an MSc from the University of Cape Town. He has spent the past 10 years building and scaling digital banking businesses in South Africa. He played a key role in the inception of Tyme, as well as its subsequent sale to Commonwealth Bank of Australia in 2015 and to African Rainbow Capital in 2018. Tauriq was appointed to his current position in 2018. As Deputy CEO, he drives cross-functional execution and has line accountability for strategy, partnerships, data science, innovation, stakeholder engagement and operations. Tauriq is a family man and takes an active role in serving the needs of abandoned, abused and orphaned children. Tauriq Keraan

Deputy Chief Executive Officer

Owen SorourChief Risk Officer

Owen has a BCom from the University of the Free State and a Master of Business Leadership degree from UNISA. He spent more than 20 years in the employ of two of the largest South African retail banks, ultimately specialising in the retail credit environment. He has held senior positions at Standard Bank, ABSA and TransUnion LLC. Owen was appointed CRO at Tyme in 2016. He sees risk as a partner that helps the business achieve its goals by applying fit-for-purpose risk frameworks that focus on the key drivers. Outside of the office, he is a family man and avid golfer who loves watching sport and travelling.

Amal DesaiChief Financial Officer

Amal qualified as a chartered accountant in 1999 and holds an Honours BCompt/CTA from UNISA. He has over 20 years’ experience in financial and business performance management. He also has extensive experience in banking, including retail banking, home and vehicle loans, credit card and banking operations. He previously worked for Standard Chartered Bank, the Barclays Africa Group and Standard Bank. Amal joined Tyme as CFO in 2017. Since then he has been involved in building the banking proposition as well as developing business strategies and aligning them to financial outcomes. On a personal level, his family comes first. To keep fit, he enjoys road running, and is a passionate follower of international cricket.

Ayn BrownChief Human Resources Officer

Ayn has a BA in Psychology from North-West University and completed the Advanced Management Program at Duke University. She held various roles in human resources and organisational development at Nedbank. She was Executive Head of Human Resources for Business Banking and later Executive Head of Human Resources for the Africa Division. Ayn joined Tyme as CHRO in 2017. She has 25 years’ banking experience, and is passionate about unlocking greatness in others. She is a wife and mother as well as a photographer, traveller, coach and music lover, and a Director of the Topsy Foundation.

Cheslyn JacobsHead: Sales and Service

Cheslyn has a BCom in Industrial Psychology from the University of the Western Cape and a postgraduate diploma in Business Management from the University of Pretoria’s Gordon Institute of Business Science (GIBS). He previously worked at Standard Bank and Deloitte. In 2012, he joined Tyme as Manager: Sales and Distribution and later became National Operations Manager at Tyme Infield. He was appointed to his current position in 2019, which is his 11th year in the banking industry. Cheslyn is a family man and as passionate about financial inclusion as he is about sport.

Heidi StoffbergHead: Compliance

Among her many qualifications, Heidi has a Bachelor of Law, a postgraduate diploma in Forensic and Investigative Accounting from the University of Pretoria, and a postgraduate diploma in Compliance Management from the University of Johannesburg. In her 17 years in banking, she held positions at FirstRand Bank and Mercantile Bank, where she was Head of Compliance Management. She joined Tyme in 2018. Heidi loves spending time with her husband and daughter. She also loves to travel and, when time permits, play a round of golf.

Dieter BothaChief Information Officer

Dieter has a BCom Accounting and Commercial Law from Rhodes University, and 17 years’ banking experience. He is the former Global Head of Transactional Services (IT) at Standard Bank South Africa. Most recently, Dieter was a Global Client Advisor at Oracle in Australia with a focus on two of the four big banks and involvement in the fintech community. Prior to joining the team, he enjoyed a corporate and entrepreneurial career. He was appointed as CIO in 2018. Dieter is married and has two sons. In his spare time he enjoys running and the odd game of golf.

Luisa MazinterChief Marketing Officer

Luisa has a BA in English from the University of Cape Town and a master’s in Business Administration from the University of Pretoria’s Gordon Institute of Business Science (GIBS). She has over 27 years’ experience as an entrepreneur, media owner and strategy consultant in the marketing and advertising industry. She sits on a global panel of final round judges for the US Direct Marketing Association’s prestigious International ECHO Awards and is the Board Chair of the Mobile Marketing Association (MMA) SA. She was appointed CMO at Tyme in 2017. She has a passion for good books, good music and good people, is hooked on Pilates and loves to travel.

Amrita ArjunHead: Internal Audit

Amrita has a BCom Accounting from the University of KwaZulu-Natal and is a qualified CIA, CCSA and CISA. Her career in internal audit spans over 15 years and she has experience in many areas, including insurance, asset management, corporate investment banking, operational risk, wealth and compliance. She previously held positions at Nedbank, including Senior Audit Manager: Operational Risk and Compliance. Amrita joined Tyme in 2018. She is an advocate of the digital era and using it to enhance both the internal audit and combined assurance functions within the company. Amrita loves tryingnew recipes, spending time with her husband and two children, and travelling to new places around the world.

Coenraad JonkerCo-founder and Chairman of Tyme

Coenraad Jonker is the co-founder and CEO of Tyme. He holds an MBA and two law degrees with honours, and has more than 23 years’ experience in banking, law and professional services. In 2000, he became CEO of Edward Nathan Corporate Law Advisers and also joined Nedcor Investment Bank’s Executive Committee. In 2005, he joined Standard Bank as Director of Community Banking, where he led a new strategy to extend banking to underserved customers. Six years later, he moved to Deloitte as a partner. In June 2012, Coenraad launched the fintech start-up Take Your Money Everywhere (TYME), which was acquired by the Commonwealth Bank of Australia (CBA) in 2015. In 2017, he was appointed Group Executive at CBA, and at the end of 2018, led the buyout of the Tyme business. Since January 2019, Coenraad is CEO of the Tyme business in Hong Kong and Chairman of TymeBank in South Africa.

Johan van ZylCo-CEO of ARC

Johan van Zyl holds a PhD in Economics from Vista University and a DSc in Agriculture from the University of Pretoria (UP). He worked in academia and as a consultant to the World Bank before being appointed Vice-Chancellor of UP in 1996. In 2001, he became CEO of Santam. Two years later, he was appointed Group CEO of Sanlam Limited. Under his strategic leadership, Sanlam became a top-performing financial services institution and a dynamic emerging market financial services provider. Johan is currently a Non-Executive Director of Sanlam Limited and various other listed as well as unlisted companies, the CEO of Ubuntu-Botho Investments and Co-CEO of ARC.

© TymeBank 2019. All Rights Reserved© TymeBank 2019. All Rights Reserved

African Rainbow Capital

TymeBankInvestor DayJohan van ZylFebruary 2019


Contents

1. Organisational Structure

2. ARC Financial Services Strategy

3. ARC acquisition of TymeBank

4. Competitor view


Organisational Structure


ARC Financial Services Strategy


ARC investment inTymeDigital and restructured entities

Situation as at 30/06/2018ARC Fin HoldCo owns 10% stake in TymeDigital; BEE partner of CBA (90%)

Carrying value of the 10% stake: R317m (carried at cost)

Financed as follows: Cash payment of R56m; vendor financing by CBA of R271m

Situation as at 31/12/2018CBA exited TymeDigital; business restructured into 2 entities -- TymeBank (SA) & Tyme Limited (HK)

TymeBank:New shareholding: ARC Fin HoldCo (73%); Founders (20%); Staff trust (7%)

ARC repaid loan (and some interest to CBA); also injected R200m into TymeBank

Tyme Limited:New shareholding: Founders/investors (57%); ARC (33%); Staff trust (10%)

Business raised US$6m against a pre-money value of US$24m; ARC followed its rights (US$2m)


Why will TymeBank win?

Two major advantages make TymeBank a winner:

• Substantial cost–savings relative to other players on transactional services, with massive scalability due to it being a digital bank

• Ease of doing business


Pricing a competitive advantage for TymeBankMonthly bank fees compared on a low transaction profile (including cash)

Source: UBS


Pricing a competitive advantage for TymeBank

Monthly bank fees compared on our medium transaction profile (digital-only)

Source: UBS


Thank you


Digital Banking It’s About Tyme


Where we’ve come from Coen Jonker: Co-founder and Chairman


Barriers to financial services adoption can be distilled down into one word: access

Physical access“Inconvenient or impossible”

Emotional access“Too complex and not trusted”`

Financial access“Too expensive”

TymeBank is empowering it’s customers to overcome these barriers through a simple, transparent and easy to understand digital banking proposition


Our StrategySandile Shabalala: Chief Executive Officer

© TymeBank 2019. All Rights Reserved© TymeBank 2019. All Rights ReservedNote: (1) Business transactional and savings accounts. (2) Infield teams operating as in-store Ambassadors at kiosks, nomads to engage with customers at mobile locations and agents to assist small businesses. (3) Digital point-of-sale device.

Consumer SME

Consumer Products SME Products

Personalaccount

GoalSave

Unsecuredterm loan

Creditcard

MoneyTransfer

Third party products

Businessaccount1

Paymentacceptance

Working capital loan

Third party Products

Merchantadvance

Channels

Apps &web

Call centre & chatbot (Max)

Kiosk Retail till point In-field2 TymePOS3

TymeBank delivers its value proposition to the consumer and small business markets through two distinct platforms

Partnerships


Our Value PropositionCheslyn Jacobs: Head Sales and Service


TymeBank’s transactional account is roughly half the cost of South Africa’s most affordable bank

Solidarity: 17 transaction profileTymeBank: Fee Structure


How we will winTauriq Keraan: Deputy CEO


TymeBank’s consumer proposition in South Africa will be focused on LSM 5 to 7, representing 21 million potential customers

Total addressable market size = 21m

Core target:LSM 5, 6, 7


TymeBank’s footprint

Onboarding Cash in/out

TymeBank 120 730 14 300Standard Bank 48 000 639 6 200ABSA 41 000 698 9 600FNB 46 000 628 4 700Nedbank 31 000 680 4 200Capitec 14 000 832 2 800

StaffPoints of presence

2

3

• TymeBank customers can deposit cash at any PnP/Boxer tillpoint (14,300 tillpoints) & also withdraw at ~40,000 Saswitch ATM’s or any Retail tillpoint supporting Visa cashback

• Competitor Cash in/out points include both owned ATM’s & branches; a subset of owned ATM’s support cash deposits

• TymeBank services its customers with 120 permanent staff members & 500 Ambassadors, supported by 50,000 PnP & Boxer staff members

• TymeBank kiosks are live at >500 PnP & Boxer stores today, and will soon cover all 730 stores

1 3

1

2


Key partnerships supported by analytics-led direct marketing enable TymeBank to acquire customers en masse

The PnP and Boxer networks and existing customer bases along with roaming teams will drive large scale customer acquisition

• Distribution across 730 stores with 500 ambassadors across the store network

• Strong, trusted brand• Strong metro and rural presence

• Out of the 7m loyalty customers Tyme• Rich customer data• Captive audience

• Money remittance customers spread national-wide

• Existing relationships with TymeBank

• Nationwide placed outside of PnP and Boxer stores in high footfall areas

• Multipurposed capability

~730 stores

500k base

~10 roaming teams

~7m

• Pensioners using a costly payments solution, opportunity for bulk payments solution

• Lower end of the segment –opportunity to address transactional and savings needs

• Provides workman compensation –opportunity to pay into TymeBankaccount as an initial hook

The ARC ecosystem will enable TymeBank to accelerate acquisition outside of the PnP and Boxer channels

~1mcustomer

base

~1mcustomer

base

~1.8mcustomer

base

Asset manager

Insurer

Insurer


Initial Propositional Draws

Send Money: Viral account opening, convenient digital remittance that allows retailer based withdrawals

Cash to Card: Digitising cash usage through Smart Shopper points incentives

GoalSave adoption: Discipline of saving, gamification

Salary Switch: Primary account usage

Lending: Big data risk scoring alleviating “thin-file” problems

Level of engagement

Time

Customer adoption curve

Ambassador (physical): Face-to-face engagements, breaks trust barriers, digital literacy and drives product awareness

Analytics (digital): Nudging customer behaviour with intelligent engagement via app, web, SMS, and email

Continuous Engagement Tools

Customer experience, cost, and differentiated use cases offer the customer a compelling reason to make TymeBank their primary bank with ambassadors and analytics-led digital engagement driving adoption.


EveryDay and GoalSave balances continue to grow at a steady rate, an indication of the attraction to the underlining proposition

TymeBank is exceeding plan in both acquisition and adoption with ~70K customers signed up with minimal marketing

WCustomer acquisition continues to grow with modest below-the-line marketing, which leads us to believe that above-the-line marketing

campaign will result in significant customer growth

0

20 000

40 000

60 000

80 000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15Week

Customers

Weekly newCumulative

R0m

R10m

R20m

R30m

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15Week

Balances

EveryDayGoalSave


Our Go To Market PlanLuisa Mazinter: Chief Marketing Officer


Our unique communication territory lies at the cross-section of our three brand pillars

Human Potential Access

Financial Wellbeing


Easy. Open an account in under 5 minutes.With just your fingerprint, no documents required.Open an account online or at your nearest Pick n Pay or Boxer

Affordable. No monthly fees.Many transactions are FREE. Pay-as-you-go-banking.Simple and transparent pricing structure

Rewarding. Bonus Smart Shopper Pointswherever you shop and DOUBLE points if you swipe and pay with our yellow card inside Pick n Pay

Unique. As much as 10% Interest on your savings after 3 months.No minimum amount required / No restrictions, fees or penalties.Protect your money with GoalSave/ Instant access to your savings

Inspiring. A bank that believes in, and backs, you and your potential

Our CVP


As a disruptive market entrant we are taking a “challenger” approach


Content Marketing delivers on our Financial Wellbeing pillar


Our retail partners launched our in-store branding 2 weeks before our ATL launch


On 24 February 2019 we launched our brand campaign Above The Line


In Conclusion


Why TymeBank is ideally positioned to disrupt the South African banking sector

No legacy.

An operating model geared towards rapid innovation.

Strategic partnerships providing a distribution, cost, and data advantage.

A digital platform and business model that enable opportunities beyond banking.

The right team.

it’s tyme for a ne...it’s tyme for a new way of banking. tymebank, south africa’s first...

Documents