A few months after its launch, Tymebank was considered one of the fastest-growing banks in terms of digital banking. The bank's launch was a success and maintaining this success is a challenge. In August 2019, the CMO of TymeBank, Luisa Mazinter, was assigned to ensure that the bank's client acquisition rate was maintained and heighten the customers' usage of existing customers' accounts. With TymeBank's success, competitor banks are targeting the same customers, reducing their banking fees, and strengthening their digital services. This case study provides an analysis of the marketing choices of the bank's CMO and provides a proposal for TymeBank to improve its marketing activities.
Michael M. Goldman, Nicola Kleyn, Luisa Mazinter
Harvard Business Review (NA0712-PDF-ENG)
December 31, 2021
Case questions answered:
- Describe the marketing environment that TymeBank found themselves in when they entered the market.
- What allowed TymeBank to compete successfully in its first year?
- Critique TymeBank’s brand and marketing communication activities between November 2018 and August 2019.
- What were the main marketing priorities that Mazinter needed to address in August 2019? What options were at her disposal to address these? How could she invest her marketing budget?
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TymeBank in 2019: Chasing the millions Case Answers
1. Describe the marketing environment that TymeBank found themselves in when they entered the market.
The marketing environment for TymeBank can be analyzed and described in terms of the 5C model (Dolan, 2014; Steenburgh & Avery, 2010).
The following table provides an analysis of the marketing environment atthe time of TymeBank’s launch, which would need to be taken into account by Mazinter in her marketing priorities in August 2019.
Table IM-1: Marketing environment of TymeBank launch
An average answer to this question would map out some/all of the descriptors presented in Table IM-1.
An A-grade answer would consolidate these findings and provide insights for further action. The A-grade response might indicate that the marketing environment is ripe for disruption by a different model of banking that can overcome substantial financial inclusion and access barriers.
The response might also conclude that the lower-income market in South Africa was substantial but underserved.
2. What allowed TymeBank to compete successfully in its first year?
TymeBank believed that they had “cracked the code” of financial services inclusion by building a model with proprietary kiosks in the retail, low-cost fintech infrastructure, a simple product, and a trustworthy brand.
This model effectively combined the nine elements of the business model canvas (Osterwalder et al., 2010).
Table IM-2: Business model canvas elements
Importantly, the business model canvas analysis suggests that TymeBank’s success was based not only on superior marketing communication and media activities but also on a reinforcing business model that included an integrated marketing communications campaign.
The analysis also demonstrates that TymeBank’s early success was due to an elegant combination or integration of strategy choices, not just low pricing.
For example, the retail and ATM channels provided immediate reach and scale, supported by physical kiosks and ambassadors and digital KYC systems, activated by substantial performance marketing and customer lifecycle communications, amplified by a big brand feel ATL campaign.
In this way, TymeBank effectively used points-of-parity, such as the Visa card, ATM network, and ATL spending, to demonstrate membership in the retail banking category and build trust.
In addition, TymeBank used points of difference, such as the…
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FAQs
Because we are a digital bank, the money we save by not having branches – coupled with our partnership with Pick n Pay and Boxer retail stores, means that we can over you a lot more at a lot less cost to you.
What are the objectives of TymeBank? ›
TymeBank believes that every South African has the right to accessible and affordable banking, and so it aimed to disrupt the local banking industry by offering a pure digital banking experience to customers.
What is the value proposition of TymeBank? ›
TymeBank's main value proposition consists of (i) simple, affordable, and accessible products; (ii) fast and automated onboarding; and (iii) incentive programs that appeal to target segments (e.g., the SmartShopper loyalty program).
Is TymeBank profitable? ›
TymeBank, a South African fintech, has announced that it reached its first-ever profit in December 2023. The neobank says it's the first digital bank to break even and become profitable in South Africa and on the continent.
What is TymeBank also known as? ›
The name of the business was changed in November 2018 from TymeDigital by CommonwealthBank SA to Tyme Bank Limited. TymeBank soft-launched on 5 November 2018, allowing consumers to open a basic transactional bank account at a limited number of kiosks in Pick n Pay Stores as well as online.
Who is behind TymeBank? ›
The bank's vision is to create a platform that stimulates economic participation and facilitates broader financial inclusion. TymeBank is majority owned by African Rainbow Capital (ARC) which was founded by Dr. Patrice Motsepe, making it South Africa's first majority black-owned bank.
What is goal save in TymeBank? ›
GoalSave is a free savings account linked to your EveryDay account. Earn more the longer you save. Start 10 different GoalSaves for 10 different goals. Earn the 11%* 'Kicker' interest rates when you perform 10 or more transactions for 3 consecutive months, and give 10-days' notice on a payout.
Who is TymeBank partners with? ›
Through a distribution partnership with Pick n Pay and Boxer, and more recently TFG, TymeBank has a total of 1,450 kiosks (including the 600 at TFG stores) and 15,000 retail points in retail stores across the country. TymeBank is majority owned by Dr Patrice Motsepe's African Rainbow Capital ('ARC').
Is it safe to use GoTyme? ›
GoTyme Bank is fully licensed and regulated by the Bangko Sentral ng Pilipinas. Deposits are insured by PDIC up to P500,000 per depositor.
Is TymeBank a safe bank? ›
As a digital-first bank, TymeBank has every layer of protection possible to keep your bank account safe. This is why scammers will go to such great lengths to access your bank account details, logins and bank cards. They need that information to access your account.
Physical Presence: Digital banks operate exclusively online, offering a straightforward, streamlined approach for digital natives. On the other hand, digital banking is an extension of a traditional bank, allowing customers the option of in-person service at a physical branch if required.
Where can I deposit money into my TymeBank account? ›
You can use any TymeBank kiosk in any Pick n Pay, Boxer or TFG store in any province in Mzansi. See the list of available kiosks here.
How is TymeBank doing? ›
TymeBank, one of the world's fastest growing digital banks, is proud to announce that it reached its first month of profitability in December 2023, less than five years since launching in February 2019. This makes it the first digital bank to break-even in South Africa and on the continent.
How much does it cost to open a TymeBank? ›
Open a bank account online for free | TymeBank | South Africa.
What is the fastest growing bank in Africa? ›
TymeBank now boasts more than 8.5-million customers, making it the fastest-growing bank in SA. S&P said fintechs will continue to challenge and emulate banks in the payments space as they provide constant, cost-effective and efficient products, forcing banks to adapt quickly and collaborate to remain competitive.
What is the difference between TymeBank and Bank Zero? ›
Bank Zero sets itself apart from TymeBank due to its lower withdrawal and transaction notification fees. The latter charges R3 per withdrawal and R0. 50 per transaction notification, while Bank Zero charges R2 per withdrawal and provides in-app and email transaction notifications free of charge.
Can I use my TymeBank card overseas? ›
Can I buy from anywhere in the world? Currently there are a list of local stores that accept TymeBank as a payment method. We will be including many international stores and payment methods soon. Using your card for online Gambling on an International website will not be allowed.
What does TymeBank stand for? ›
TYME – which stands for 'Take Your Money Everywhere' was spun out in June 2012 by a team within Deloitte Consulting, led by Coen Jonker & Tjaart van der Walt, as a mobile money remittance operator funded by MTN to provide technology to retailers that enable them to offer local remittance services cheaper than banks.
What bank is similar to TymeBank? ›
TymeBank's top competitors include Paymenow, and Kuda. Paymenow is a financial wellness and inclusion platform that specializes in providing Earned Wage Access (EWA) services. The company offers a solution that allows emplo…
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