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TymeBank disrupts market with a free transactional account

The upstart, now owned by African Rainbow Capital, unveils its game-changer …

TymeBank, which Patrice Motsepe’s African Rainbow Capital bought from the Commonwealth Bank of Australia in August, has unveiled its first set of products, centred on a transactional bank account, called EveryDay, with no monthly fees. This is a first in the South African market.

It began signing up clients for its new digital bank earlier this month and says “the money we save by not having branches benefits” customers, as “it allows us to charge you a lot less for your banking services. Which means no monthly fees, many day-to-day banking transactions are free and low charges for other transactions.”

The catch – for now – is that this is TymeBank’s soft launch and there are currently only six kiosks where you can open an account (at Pick n Pay stores in Rosebank, Kensington, Bedfordview and Kenilworth, and Boxer outlets in Alexandra and West Street, Durban).

However, the bank says it continues to roll out kiosks and will eventually have in excess of 700. These kiosks are Wi-Fi hotspots, allowing customers to download the TymeBank app for free.

Fees

The fee structure is wonderfully simple, with just a handful of actual fees for its EveryDay account:

   

Account opening fee

Free

Monthly fees

Free

Cash withdrawals at PnP, Boxer

Free

Cash at till at other major retailers

R2

Cash at other bank’s ATMs

R8 per R1 000

Deposit at PnP, Boxer

R4

EFT payment to TymeBank account

Free

EFT payment to other bank account

R2

Card swipes

Free

Certified e-statement

Free

Limits

There are limits on transactions and balances, which are relatively low until you provide certain information, including biometric data and a residential address, to the bank. Certain ‘wallet’ type services offered by rival financial services providers have similar strict limits under the Financial Intelligence Centre Act (Fica).

 

‘Just met’

‘Getting to know you’

‘Good friends’

Customer profile

Customers who have opened an account digitally

Customers who have captured their biometric info at a kiosk (and are issued a Visa debit card which links to PnP’s Smart Shopper programme)

Customers with a verified residential address

Daily spend

R2 000

R10 000

R100 000

Monthly spend

R40 000

R100 000

R1 000 000

Profile balance

R20 000 (combined for EveryDay account and GoalSave)

R50 000 (combined for EveryDay account and GoalSave)

R500 000 (combined for EveryDay account and GoalSave; maximum GoalSave balance is R100 000)

Payment

R2 000

R10 000

R100 000

Prepaid purchase

R1 000

R1 000

R1 000 (including send money)

Debit card purchase

N/A

R10 000

R10 000

Cash withdrawal

R2 000

R3 000

R3 000

Cash deposit

R3 000

R3 000

R3 000

The bank is entirely paperless and claims a customer is able to open an account in less than five minutes. The TymeBank Visa debit card is automatically linked to Pick n Pay’s Smart Shopper rewards programme and customers earn Smart Shopper points whenever they use it to pay (not just at Pick n Pay). Purchases at Pick n Pay earn double Smart Shopper points using the TymeBank card.

TymeBank has rethought savings as well, and with its GoalSave tool, you are able to set 10 goals and save money in each GoalSave. Think of these as mini savings pockets or accounts. Interest earned increases over time, depending on how long money stays in each GoalSave. If you select the 10-day notice period option for withdrawals, ‘bonus’ interest will be earned (at a 0.111x multiplier). At this time, the maximum interest rate is 10%.

No of days after money is added to a GoalSave

Annual interest rate

1-30

6%

31-90

7%

91+

9%

Bonus: If you give 10 days’ notice before withdrawing after 90 days

10%

Bloomberg reports that the bank signed up 1 800 clients in the first week of its ‘unofficial launch’.

With a free account and such simple pricing, expect a lot more customers to sign up as the bank rolls out its presence in Pick n Pay and Boxer stores across the country. TymeBank is going to completely shake up the market – for the better – especially at the lower-end.

* Hilton Tarrant works at YFM. He can still be contacted at hilton@moneyweb.co.za.

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Is it really free banking if you’re forced to become a PnP Smart Shopper customer and pay their higher prices?

Registering as a Smart Shopper doesn’t force you to shop at PnP. You still earn your Shopper points on all your card spending.

Excellent products by Tymebank , and clever use of PNPay as kiosk . Wonderfull to be finally rid of paperwork . Transfer funds to your account free , free card swipes and free cash withdrawals …try beat that !!

hehehehe..the sound of Tyme management as another person think it is free banking….they are not a non-profit organisation….do you realy think it is free…somewhere they will make up for the “free” banking

This sounds fantastic – but as there is no such thing as a free lunch, I shall reserve judgement and watch with interest.

Yup anything that’s free: Either someone else is paying for it or it’s not worth it.

We have seen state capture and there has been capturing of the Reserve Bank and its ‘Accommodation System’.

Hopefully, this breaks the capture.

Great to see some Fintech companies disrupting the old way of banking, personally I am waiting it out for Bank Zero.

Unfortunately this too will be a dinosaur. It’s a great initiative unfortunately the government is slow to adapt with roll out of internet infrastructure across S.A. if they did then there would be no issues with Social Grants.

Crypto currency is here now and the fees are even less, not even boarders are obstacles.

No more Fiat, peer to peer is the only way.

You must be joking. Setting up crypto currencies is easy, there are hundreds of them, more than regular types. I have not seen anybody pricing their goods or services in crypto, they accept some but not all crypto as payment but the price is always in what you call “fiat” currency. The major problem, at least with BitCoin is that it is by its nature a deflationary currency.

any opinion on the bitcoin crash thats happening now…dont see the dollar doing it

“No more Fiat” ?

FIAT all the way! (I’ll even still be driving my old Panda, after most of the crypto hype has waned, and hopefully something practical has morphed from blockchain.)

Admittedly, crypto is ideal to be used to transfer (flaunting local SARB exchange controls in excess of the R1m/R10m limits…) one’s ZAR into another Fiat currency. Then from one crypto-wallet to another crypto-wallet in another domain, say in the UK or US, and then back into Fiat again. And in Fiat currency it remains. The system is trusted for centuries.

If one keep within the R1m annual SARB discretionery allowance (i.e. without SARS tax clearance), you can use “money transfer companies” (visit http://www.monito.com) to do the same crypto can do. At cost rates matching crypto.

A well executed app! Can confirm that it as as digital as they say it is. Nice thing with GoalSave is that the interest accrues daily. There were two people ahead of me at the PNP kiosk in Rosebank. If you want people to want something, put a red velvet rope in front of it.

This has been tried before. Old Mutual had an offering some years ago. Standard Bank also tried with bluebean.com. Not sure if branch-less banking could ever work. As for Motsepe, he’s nothing but an average businessman who got gifted everything through his ANC connections. He knows little about business and even less about banking.

@brad666… eat your sour grapes in silence.

This is a public website so I’ll eat them on here if I choose to thank you very much.

Would you feel better if I tell you that his businesses are run by Van Zyl’s and Van Der Merwe’s?

That would explain why they haven’t collapsed yet. Makes perfect sense.

What is mind blowing is that I was able to FICA online without any papers! Why cannot other banks do the same? I was stunned and this is the way of the future – traditional thinking is going make you extinct!

Gupta types will like that. Maybe that is where the money will come from, hot.

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