Banking and financial services

Banking while shopping is becoming commonplace.

Being able to do one’s banking at somewhere that is not a bank is not a new concept. However, TymeBank, one of the newer entrants onto the South African banking scene, is taking the concept of “retail banking” to another level. Having run banking kiosks within retailers such as Pick n Pay and Boxer for several years, TymeBank has signed a deal with TFG, a group that has a big presence in the Mpumalanga. There are no fewer than 24 Exact stores in Mpumalanga, from Acorn Plaza to Witbank.

What used to be known as the Foschini Group has 34 brands, including Markhams, Totalsports, Jet and Dial a Bed, and 30-million customers. In the short term, TymeBank will have access to 600 TFG kiosks, taking the bank’s total in South Africa to 1 450.

Another relatively new bank is Capitec. Investment holding company PSG has reduced its holding in Capitec Bank from 32% to 4%, earning about R4-billion by selling those shares.

Discovery Bank officially launched in March 2019 and is experiencing rapid growth with deposits of R3.7-billion. Discovery Bank is applying the behavioural model it uses in its health business to reward good financial behaviour.

In 2022, financial services group Old Mutual received permission from the prudential authority of the South African Reserve Bank to apply for a banking licence. The bank will spend R1.75-billion on setting up the bank and intends to launch in 2024.

Ubank, with a history of catering to mineworkers, was found by the South African Reserve Bank to have an unacceptable capital adequacy ratio in May 2022 and was consequently placed under curatorship. Teba Trust Fund, which owns Ubank, was actively seeking a strategic investor when the curatorship was announced. The administrators of the fund are the National Union of Mineworkers (NUM) and Minerals Council SA. One of the banks being courted was the South African arm of Nigeria’s Access Bank Group and Minerals Council SA remains positive about the future of the bank.

Despite the collapse of VBS Mutual Bank in 2018, the appetite for mutual banks is strong, given the nature of the South African market.

Financial Sector Conduct Authority: www.fsca.co.za

Public Investment Corporation: www.pic.gov.za

South African Reserve Bank: www.resbank.co.za

The Young Women in Business Network (YWBN) has been granted a mutual bank licence and Bank Zero also intends to use the mutual model.

South Africa’s four big retail banks (Nedbank, Absa, Standard Bank and First National Bank) have a solid presence in the major towns in the province.

Agriculture is an important focus area for banks, and most have specialised divisions.

Piet Retief-based TWK Agri offers financing and insurance together with the usual suite of agricultural services. Afgri, one of the country’s biggest agricultural companies, offers financial services (financing and insurance) under the brand Unigro. ■