Northern Cape Business 2021-22

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OVERVIEW

Banking and finance New options are available for banking customers.

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n 2017 Tyme Digital received a licence to run a bank. By early 2019, TymeBank was available in 500 Pick n Pay and Boxer stores and more than 50 000 customers had an account. Tyme stands for Take Your Money Everywhere. African Rainbow Capital is now the leading shareholder in Tyme, having bought out the Commonwealth Bank of Australia. With African Rainbow Minerals having three large mining assets in the Northern Cape, the province could be said to have played a role in the founding of this new bank. Tyme reported in October 2020 that it had 2.4-million customers, up from 1.4-million at the end of March. A 400% increase in the use of services such as airtime and electricity purchases was also noted. Second to market among the country’s new banks was Discovery Bank, which officially launched in 2019 and is experiencing rapid growth with retail deposits at the end of 2020 of R5.7-billion. Discovery Bank is applying the behavioural model it uses in its health business to reward good financial behaviour. The Discovery group is already a giant on the JSE with a market value of R83-billion and access to millions of customers. With the renewable energy sector booming in South Africa, a new sector in need of project funding has opened up for banks. The Northern Cape has attracted a large number of independent power producers. The Northern Cape is also taking an interest in the activities of the newly-formed BRICS Development Bank. Of particular interest is the bank’s initiative in developing an infrastructure roadmap and a SADC Industrialisation Strategy. The appetite for mutual banks is strong, given the nature of the South African market. The Young Women in Business Network (YWBN) intends applying for a mutual bank licence and Bank Zero will 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. Capitec is rapidly moving towards being part of a Big Five and it has announced that it will partner with

ONLINE RESOURCES Association for Savings and Investment South Africa: www.asisa.org.za Auditor-General of South Africa: www.agsa.co.za Banking Association South Africa: www.banking.org.za

NORTHERN CAPE BUSINESS 2021/22

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SECTOR INSIGHT Capitec has expanded quickly in the Northern Cape.

Centriq Life to enter the insurance market. Capitec has established 20 branches and ATMs in the province, many of which are with partners such as BP, Engen, Total, Shoprite, Checkers and Spar. Most agricultural companies have financing and services divisions, as one would expect in a province with a strong and varied agricultural sector which exports much of its produce. The Land and Agricultural Development Bank of South Africa (Land Bank) is a major participant in the Northern Cape financial sector and the Industrial Development Corporation (IDC), as an equity investor, is another important player. ■