South African billionaire Patrice Motsepe’s company, African Rainbow Capital (ARC), has received official approval from the Prudential Authority of the South African Reserve Bank to acquire a majority stake in TymeDigital, a new digital bank. This development marks a significant milestone for ARC, as it allows them to expand their presence in the financial sector and take advantage of the growing digital banking market in South Africa.
TymeDigital is a promising new player in the digital banking space, offering innovative financial services and products to its customers. With ARC’s acquisition of a majority stake, TymeDigital will now have access to the extensive resources and expertise of ARC, which is expected to fuel its growth and increase its market share.
The approval from the Prudential Authority is a testament to ARC’s strong reputation and track record in the financial industry. It demonstrates the confidence that regulatory authorities have in ARC’s ability to successfully manage and develop TymeDigital into a leading digital bank in South Africa.
This acquisition is part of ARC’s broader strategy to diversify its investment portfolio and capitalize on the fast-growing fintech sector. By investing in TymeDigital, ARC aims to tap into the increasing demand for digital banking services and leverage the widespread adoption of technology in the financial industry.
Moreover, this move aligns with ARC’s commitment to promoting financial inclusion in South Africa. TymeDigital’s digital banking services have the potential to reach underserved communities and provide them with convenient and affordable financial solutions. This aligns with ARC’s vision of driving socio-economic transformation and empowering previously marginalized segments of the population.
Overall, the approval for ARC’s acquisition of TymeDigital is a significant development for both companies. It opens up new opportunities for growth and innovation in the digital banking sector in South Africa, while also contributing to ARC’s strategic objectives of diversification and financial inclusion..
In August, the black-owned financial services company, ARC, reached agreement to acquire 90 percent of TymeDigital for an undisclosed sum through its subsidiary, ARC Financial Holding Company (FinHoldCo).
FinHoldCo currently holds a 10 percent shareholding in TymeDigital, and the acquisition means that it will now wholly own the bank. The company’s strategic objective is to invest in insurance, asset management, specialist financial services and banking.
ARC said that the control of a digital bank was a critical step in driving synergies among the various companies in these four subcategories to enhance value creation.
TymeDigital is a registered South African bank with a strong fintech focus. It is majority owned by the Commonwealth Bank of Australia (CBA), a leading banking group in its core markets of Australia and New Zealand.
The bank has been trialing its operations as it works towards an official launch. It aims to provide affordable and accessible banking services through a growing network of partners, including Pick n Pay. Targeted client segments include unbanked and under-served clients as well as small and medium enterprises.
ARC has obtained all necessary regulatory approvals for the acquisition of the bank, including approval from the Competition Commission and the acquisition is therefore unconditional.
TymeDigital will change its name to TymeBank when it officially launches to the South African public. (via African News Agency)