Mzansi has a new bank, backed by billionaire Patrice Motsepe’s African Rainbow Capital (ARC).
This is according to South African fintech outfit Tyme.
On Thursday, Tyme announced that it has been granted a licence by the South African Reserve Bank.
The operating license is the first to be issued to a new bank by the SARB, since 1999.
At a press held in Rosebank, TymeDigital's CEO Sandile Shabalala they can now offer South Africans the ability to open accounts and transact securely within minutes.
Just 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.
Tyme is currently trading as a lender that allows customers to access funds through their mobile phones, but it also gained a provisional banking licence in 2016.
ARC has big plans for Tyme Bank to challenge the status quo of banks in South Africa.
