TymeBank has announced that after nine months of trading, they have onboarded one million customers. Of these customers, approximately 45% (450 000) transact once or more a month.

Although the bank’s main customer focus has been lower-income earners, nearly half of their customer base earns more than R5 000 a month and 45% are over the age of 35.

Even for higher-income earners, or older customers who may be less tech savvy, TymeBank’s appeal has been the ease of opening an account, zero monthly fees, and high interest rates paid on deposits.

This has created a demand for more functionality on the account which until now has been limited. For example, until recently TymeBank customers could not use their cards to pay for online shopping. The bank was also not able to provide proof of payment for electronic fund transfers.

Cheslyn Jacobs, head of sales and service at TymeBank, says the aim of the bank at launch was to provide banking services to lower-income customers.

Designed for the 80%

“We designed for the 80% not the 0.1% of customers,” explains Jacobs who says for most of their target market, online shopping was not a requirement. However, the bank’s low-cost, easy onboarding features have attracted a far wider range of income earners, resulting in a demand for greater functionality.

TymeBank was able to bring on e-commerce ahead of Black Friday and Cyber Monday for local online shopping, however, they are still waiting for the South African Reserve Bank to approve their licence for foreign online purchases.

“From a technical perspective we use the same system as for local transactions, so once we have the approval it will be a matter of just switching on for international shopping,” says Jacobs.

The bank is now able to provide proof of payment for transactions and this can be applied to already-completed transactions as well. Unlike its competitors, TymeBank does not charge a fee for a proof of payment.

In line with its customer demographics, the TymeBank app has only been available on Android and not the Apple iOS platform.

“Apple users are very big on social media where they have been requesting an app. There is also a big secondhand market for Apple phones. It is on our roadmap, but not immediately,” says Jacobs who adds that Apple users have still been able to use online banking which has the same look and feel as the app.

Mobile banking via USSD

The focus for the bank at this stage is to provide mobile banking via USSD functionality within the next few weeks. This was another lesson learnt by the bank: although smartphone penetration is growing, many of its target market do not have a smartphone and are unable to use either internet banking or the app.

Most of the glitches around debit orders have been resolved. Jacobs explains that initially some payment providers were slow to onboard TymeBank onto their debit order systems. Where delays were evident, TymeBank raised the issue with the merchant’s bank.

Next year TymeBank will be launching personal loans. In line with its goal of providing cost-effective banking, there will be no monthly service fee on loans and a flat initiation fee below the maximum allowed by the National Credit Act.

The bank will also be launching a small business proposition for sole proprietors next year. Jacobs says a sole proprietor will be able to open an account in minutes and immediately receive a bank card with the company name embossed on it.

TymeBank fees

TymeBank has kept its fee structure simple. Transactions and services are either free , or they incur a fee of R2, R4 or R8.

Free transactions

• No monthly fee
• Card purchases
• Airtime/data purchases
• Electricity purchases
• Cash withdrawals at PicknPay or Boxer

R2 fee

• Cash withdrawal at another retailer
• Debit orders
• Electronic payments to another bank

R4 fee

• Cash deposit at PicknPay or Boxer store

R8 fee

• Withdrawal from an ATM is R8 per R1 000 withdrawn. For example, you will pay R8 up to the first R1 000, R16 for R2 000 and R24 for R3 000

Jacobs says  that with high interest rates starting at 6%pa,  combined with Smart Shopper loyalty rewards, 90% of customers receive more back in rewards and interest than they spend on bank fees.

This article first appeared in City Press.