As of 31 December 2024, TymeBank had 10.7 million customers.
The Competition Commission has recommended unconditional approval of TymeBank’s proposed acquisition of SanlamTyme and a portfolio of unsecured personal loans from Sanlam Personal Loans (SPL).
TymeBank, South Africa’s first digital-only bank and majority-owned by Patrice Motsepe’s African Rainbow Capital (ARC), now holds deposits nearing R7 billion. ARC has an effective 57.7% stake in the bank.
In its statement, the commission noted that TymeBank, the acquiring party, offers a range of financial services in South Africa, including personal and business banking, as well as unsecured personal loans. SPL, the seller, provides unsecured personal loans and rewards for qualifying borrowers.
The commission concluded that the transaction is unlikely to substantially lessen or prevent competition and raises no significant public interest concerns.
This follows the May announcement by Sanlam and TymeBank of their plans to launch a joint venture focused on unsecured lending, with embedded credit life insurance and cross-selling opportunities at its core.
The venture aims to challenge established players in South Africa’s competitive unsecured loans market, where Capitec has built its reputation and growth.
Sanlam Personal Loans, which will form the foundation of the new venture, currently offers unsecured loans ranging from R5 000 to R300 000, with fixed interest rates and repayment terms of 12 to 72 months. As of December 2024, SPL’s loan book stood at R5 billion.
