TymeBank has set in motion the acquisition of Retail Capital, a fintech company that provides funding to small and medium-sized businesses in South Africa.
The acquisition, which is subject to regulatory approvals, would see Retail Capital become a division of TymeBank and the foundation of the bank’s expanded business banking offering.
The deal would see Retail Capital’s funding expertise and TymeBank’s deposit base and operations combined to serve a broader customer base.
“This acquisition will enable TymeBank to expand its offering to entrepreneurs to include working capital finance,” says TymeBank CEO Coen Jonker. “Retail Capital has acquired significant risk management experience over the past decade and through different economic cycles. They have an experienced team in place and their risk models and operational processes have been battle-tested and optimised to a significant degree for small-business funding.
“Together, we look forward to providing access to innovative solutions to ensure business owners can fuel their growth, drive job creation and contribute to the broader economy.”
The two businesses are also economically complementary and synergistic. Retail Capital’s product offering to small businesses requires a flexible source of low-cost capital, which TymeBank’s deposit base can provide.
“Retail Capital has a long history of supporting SMEs by enabling them to access affordable funding that helps their businesses grow,” says Retail Capital CEO Karl Westvig. “Now, through this acquisition by TymeBank, we will be able to scale the offering, giving SMEs the opportunity to expand through funding that works on their terms.
“Retail Capital already powers many industry-leading partners in the Acquiring, Retail and Payments space to support their SME customers and the tie-up with TymeBank will further enhance this offering to our partners’ customers.
“Both Retail Capital and TymeBank have the customer front of mind, and we see the strategic move as a positive one that will greatly assist all business owners in South Africa,” he adds.
Tyme Group, through its multi-country digital banking presence, will also enable Retail Capital’s international expansion into other markets.
TymeBank’s business customers stand to benefit from the launch of a new offering, TymePOS, a mobile point-of-sale app that turns an NFC-enabled cellphone into a tap-and-go payment device.
TymeTrybe, a financial community platform that equips business owners with a range of business tools, accredited courses and other educational services as well as access to networking opportunities, will be a key feature of TymeBank’s expanded Business Banking offering.
“It’s exciting to know that visionary banks like TymeBank, along with our partners such as Meta, Wits and SMEasy, share our vision to take a more holistic look at the amazing people at the heart of our business communities. This is a momentous step in our journey to create community-oriented B2B banking for every size and type of SME around the world,” says Mo Harvey, founder and CEO of Tribe Fintech.
Also in the pipeline is a web-based e-commerce app that makes it easy for small merchants to sell their wares on Facebook and Instagram. A delivery service will be included as part of the offering, aptly named ‘SellOnSocial’.
“The small business sector in this country is vital to economic development and job creation and deserves all the help it can get, particularly given the immense hardship of the last few years. We believe our revitalised business banking offering is what small business owners want, need and deserve,” says Jonker.