Pandemic turns out to be TymeBank's boom

In March, TymeBank was about to launch a credit facility for customers but it was forced to pulled the plug. Even so, the bank said it had done well during the past six months, almost doubling its customers. I don t think it s right to “’ ’ profit from someone s ’ vulnerability, said Tauriq ” Keraan, CEO of the two-yearold digital bank.

The bank is owned by ARC Financial Services, a company within Patrice Motsepe s ’ Ubuntu-Botho Investments.

Keraan said in the current economic climate, where consumers were struggling financially and there were high rates of bad debt, it would be irresponsible to lend money from its customers deposits. ’

Instead of a traditional interest-bearing credit facility, the bank has opted to create an interest-free advance facility to be launched in 2021.

Keraan said the best way to describe this was to consider it as a lay-by product, but one gets the money upfront.

Asked how the bank would make money on loans for which it did not charge interest, Keeran said that was their magical sauce ”.

“The bank would offer the product to customers based on their credit score and Pick n Pay Smart Shopper data, which the bank has access to through its partnership with Pick n Pay.

Since March 26, the customer base had grown from 1.4-million to 2.4-million, the use of their services for buying electricity or airtime increased by 400%, card transactions doubled and the value of deposites had increased by 300%.