Emmanuel Ojukwu
South African digital bank TymeBank is set to extend its operations to Indonesia by the end of 2024, as part of its broader strategy to solidify its presence in Southeast Asia. After achieving profitability last year, the bank is now targeting growth in the region, beginning with the formalization of its presence in Vietnam.
TymeBank will launch its Merchant Cash Advance (MCA) product in Vietnam as its initial offering, followed by retail services within the next 12-15 months. The Indonesian market will see a similar entry strategy, starting with the MCA product.
Merchant Cash Advance provides business owners with a type of loan based on their projected future income, offering them a flexible financial solution to meet operational needs or enhance cash flow. TymeBank’s Co-Founder and CEO, Coenraad Jonker, emphasized that their business model is well-suited for the Indonesian market, with positive feedback already received from local regulators.
TymeBank, which currently operates in South Africa and the Philippines, plans to implement an offline-to-online (O2O) strategy in Indonesia and Vietnam. This approach, which has proven successful in the Philippines, involves setting up digital kiosks in physical retail locations where customers can quickly open accounts. This model helps reduce customer acquisition costs (CAC), a significant challenge in the digital banking sector, particularly in Asia.
The bank’s expansion reflects its commitment to democratizing financial access in emerging markets while maintaining a competitive edge through unique value propositions tailored to local needs.
