South Africa has a new bank, backed by billionaire Patrice Motsepe’s African Rainbow Capital (ARC).
South African fintech outfit Tyme announced on Thursday that it has been granted a licence by the South African Reserve Bank. The operating licence to TymeDigital by Commonwealth Bank SA is the first issued to a new bank by SARB since 1999.
TymeDigital’s CEO Sandile Shabalala said at a press briefing in Rosebank that they can now offer South Africans the ability to open accounts and transact securely within minutes.
Last month, ARC said it would buy a 10% stake in Tyme, that was owned by the Commonwealth Bank of Australia (CBA), in order to create a black-owned, black-controlled bank that could challenge the dominance of South Africa’s current big banks.
In turn, CBA announced last month that it would sell 10% of Tyme to Motsepe’s ARC.
CBA bought a 100% stake in Tyme in 2015 in a deal reportedly worth R365m. The company originated as part of a Deloitte Consulting project that was funded by MTN, but in June 2012 the venture was spun out and established as a stand-alone business.