Billionaire Motsepe seeks to shake up SA banks with Tyme | Fin24
 
  • Covid-19 Money Hub

    The hub will help answer your business and money questions during the coronavirus crisis.

  • Dudu Myeni

    The former SAA chair has been declared a delinquent director for her role at the national airline.

  • Cigarette Ban

    Govt says emerging research shows smoking leads to more severe cases of Covid-19.

Loading...

Billionaire Motsepe seeks to shake up SA banks with Tyme

Aug 24 2017 20:40
Renee Bonorchis, Bloomberg News

Johannesburg - African Rainbow Capital's banking partner is close to getting a license that it wants to use to challenge the dominance of South Africa’s biggest lenders.

The  Commonwealth Bank of Australia has said it will sell 10% of Tyme, a Johannesburg-based lender that allows customers to access funds through their mobile phones, to billionaire Patrice Motsepe’s African Rainbow Capital after buying the business in 2015. Tyme was granted a provisional license by the South African Reserve Bank last year.

“The license is expected before the end of September,” Johan van der Merwe, co-chief executive officer of African Rainbow Capital, said in an interview in Johannesburg on Thursday. The regulator is looking at the cloud-based system that ARC’s fintech partner is using to make sure it works before granting the full license, he said.

South Africa’s four biggest banks, including Standard Bank Group and FirstRand, haven’t had to face competition in the consumer market since Capitec Bank started more than 15 years ago. Now, the central bank has three provisional licensees, Tyme, insurer Discovery and the South African Post Office.

This comes as the country’s ruling party pushes for the creation of a state-owned bank to boost lending to the majority black population and businesses that the African National Congress has said have been excluded from the banking system.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:

NEXT ON FIN24X

 
 
 
 

Company Snapshot

Voting Booth

How has Covid-19 impacted your financial position?

Previous results · Suggest a vote

Loading...