One of the questions I’m often asked as TymeBank CEO is “How can digital banks enable people to improve their financial wellbeing?” In other words, how can we remake the banking system, so it works for the people we serve, and not just for banks?
In my experience there are three impactful things digital banks can do to improve the banking experience and encourage better financial practices.
Firstly, we can empower customers through education, by lowering and being transparent with fees and by providing user-friendly digital interfaces. Secondly, we can encourage beneficial behaviours such as saving and responsible borrowing. Finally, we can help bridge the physical/digital divide.
Most digital banks are well-positioned to do the first two, while a few are paradoxically better prepared than legacy banks to play a role in the third.
Although a digital bank like TymeBank, which has over 4,5 million customers, is built on digital infrastructure, the interoperability of our systems allows customers to deposit and withdraw cash at over 14 000 retail-partner till points nationally and also allows them to open a bank account and obtain a live debit card in a paperless, five-minute onboarding process.
Emerging economies and certain segments in developed markets need these ubiquitous cash handling points to allow people to interface between the physical and digital world in a way that’s frictionless, convenient, and low cost.
Digital banks are well placed to offer a better experience for customers at every stage of the financial journey, from access to prosperity. It’s time we reimagined financial services from the ground up.
TymeBank CEO Tauriq Keraan was a key member of the team that led to Tyme’s inception in 2012 and played a critical role in the launch of TymeBank in 2019. Under his leadership, South Africa’s first digital bank has become one of the fastest growing in the world. A qualified mechanical engineer, Tauriq obtained his MSc (Eng) from the University of Cape Town. He has spent 13 years building and scaling digital banking businesses in South Africa.
