Proof that the phygital model is securing its rightful place in the evolving banking landscape, Singapore-based global digital banking group Tyme, the parent company of Philippines’ GoTyme Bank, achieves an annualized revenue run rate of US$160 million in 2023, while its flagship South African operation TymeBank becomes the world’s fastest profitable standalone digital bank.
While a study by global consultancy Simon-Kuchor found that fewer than 5 percent of digital banks around the world are profitable, TymeBank beats the odds as it ranks in the top 5 percent of digital banks globally. The South Africa operation also qualifies as one of the world’s fastest-growing digital banks, as it secured 8.5 million customers since its launch in February 2019 and achieved 30 percent growth in its SME lending portfolio in 2023.
In contrast, the majority of digital banks take longer to become profitable. Even NYSE-listed Nubank, one of the most widely recognized digital banks in the world with a market capitalization of US$40 billion, took eight years to breakeven.
Co-Founder & Executive Chairman of Tyme Group, Coenraad Jonker says, “We are proud of our growth in emerging markets, as we bring critical financial access to individuals and businesses. These markets are significantly underserved compared to more established markets, representing enormous growth opportunities for Tyme Group.”
Philippines’ GoTyme Bank acquires over 2 million customers at record pace with successful Phygital model
Meanwhile, Tyme Group’s Philippines operation GoTyme Bank, a joint venture with the Gokongwei Group, has reached over 2.3 million customers in just 14 months, onboarding an average of 250,000 customers per month over the past three months. GoTyme Bank’s first 14 months are significantly ahead of Tyme Group’s South Africa operation on a like for like basis, which acquired 1.6 million customers within the same timeframe.
The Tyme Group attributes its record-breaking success and unprecedented growth potential to its unique sales and service model: a combination of digital and human engagement integrated into physical retail ecosystems. In the Philippines, GoTyme Bank’s phygital model has been met with higher than expected demand. A society that has only recently begun to embrace digital banking alternatives, Filipinos associate convenient and efficient customer service with direct interactions with people rather than chatbots—a need that GoTyme Bank fulfills by offering access to physical kiosks and banking ambassadors in partnership with partners and retailers nationwide.
Beyond bank ambassadors, the Philippines’ GoTyme Bank democratizes a “preferred banking” experience by offering features, pricing, and customer service that was previously reserved for the top 5%. Examples of this preferred banking include 5 minute account opening and card issuance, the leading debit card loyalty program, high interest savings with no minimum balance, low InstaPay (money transfer) fees, and a commitment for a human to answer a call or in app chat in under 3 minutes.
GoTyme Bank CEO Nate Clarke says, “We are proud of our sister bank in South Africa and we see this as further validation that our unique retail distribution model is a major accelerator in building a sustainable digital bank. This gives us even more confidence that GoTyme is on the right track to build one of largest retail banks in the country and fulfill its mission of unlocking the financial potential of all Filipinos.”
By 2027, 32 percent of the population is predicted to have embraced digital banking which bodes well for GoTyme Bank.
