TymeBank, a digital bank in South Africa, is set to bolster its business banking offering through the proposed acquisition of FinTech firm Retail Capital.
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 wider customer base. TymeBank believes being able to channel funding efficiently to business owners in South Africa is critical to the expansion of the historically underserved small business sector.
TymeBank’s current business banking offering – which already has over 100,000 customers – involves a transactional business account that can be opened in under five minutes and has free debit card and zero monthly bank fees as well as free online purchase transactions and free bulk payments.
Meanwhile, Retail Capital claims it lowers the barriers to funding for SMEs through an easy, three-step online application process. The firm said over the last decade it has already provided more than 43,000 business owners in South Africa with over R5.5bn in working capital.
TymeBank said the two companies are also ‘economically complementary and synergistic’, as Retail’s product offering to small firms requires a flexible source of low-cost capital, which TymeBank’s deposit base can provide.
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