Avior Corporate Summit 2021 Presentation - African Rainbow ...
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Avior Corporate Summit 2021 Presentation
GoTyme, Philippines
Tyme, Singapore • Joint venture partnership with
JG Summit Holdings to launch
• Headquarters of Tyme
a digital bank
• Business development,
strategy, international
Who we are.
partnerships and data analytics
Tyme is a multi-country digital
banking group, focused on
bridging the digital divide in
emerging markets, by integrating
into physical retail ecosystems. TymeBank South Africa
• First full greenfield digital bank
deployment with ~200 staff
We launched our first full digital Tyme, Vietnam
• Tech and product development hub
bank deployment in South Africa • ~160 employees
in February 2019. • Focused on full stack development,
systems integration, data science
and analytics
Factory, South Africa Innovation Garage
• Manufacturing facility for • Dedicated research and development teams
proprietary hardware innovations • Focused on continuous innovation
2
of the population are of transactions are
underserved by banks still conducted in
or unbanked cash
Bank customers in
emerging markets
are underserved.
>50% >98% 60%
of retail transactions are
carried out offline
3
The democratization Digital-only banks face Integrating digital into the physical
and digitalization of hurdles of… retail environment, Tyme enjoys…
banking starts
where people are Smaller and narrower segments
of potential customers
Larger and more diverse base
of potential customers
today – in the real
world.
Narrow data sets that provide Heterogeneous, rich transactional
specific insights into a focused and loyalty data sets that provide
part of customers’ lives 360° insight into customers’ lives
High costs and friction in accepting Frictionless movement from
and dispensing physical cash physical cash to digital
Limited digital interfaces in Frequent and recurring engagement
servicing and monetizing the with customers in supermarkets and
customer relationship convenience stores
4
We have gained strong market traction and brand
recognition in South Africa.
3.3 million >60% ~30%
bank customers 30-day lower-cost than the next
acquired 27 months activity rate1 most affordable bank2
post-launch
>120k 57% ~850
new bank Highest NPS score points of presence
customers acquired versus industry nationwide for onboarding,
each month average of 15,000 for cash-in / cash-out
33.5%3
Rated Second Best
Bank in South Africa by
Footnotes:
(1) 30-day active base refers to revenue generating customers in the past 30 days. (2) Based on the UBS Global Research report, “South African Banks, Pressure
building on fees”, published on 29 January 2020. (3) Based on a survey, conducted by Consulta, of ~12,500 customers in 2020.
5TymeCoach data engine
TymeCoach processes traditional and alternative data
(e.g., retail transactions) to credit score and assist
How it works.
TymeCoach logs down customer’s users in managing their personal finances.
MoreTyme payment obligations for the
next 2 months and reminds customer
to set aside enough money.
With bank account activated and
funded in real-time, customer
can now pay bills, buy airtime
and SendMoney to friends.
6
4
5
3
Realizes that funds are 2
insufficient for one TymeKiosk
1a prints the
durable goods item. He 1b
checks his MoreTyme personalized Opens an
balance and buys with Uses card or debit card on account
that to pay later instead. mobile app to the spot. online in
deposit cash at less than 5
the cashier. minutes.
Uses card to pay for Bank account
shopping at the cashier, Visits store to purchase is activated
earning the customer daily necessities and is instantly.
reward points for spend greeted by an
on TymeBank card. ambassador at the
Uses biometric ID to open an
TymeKiosk.
account in less than 5 minutes.
Bank account activated instantly.
6
TymeKioskOur platform of proprietary and third-party products provides our customers
with easy, one-stop solutions integrated with their lifestyle needs.
Retail Transactions & Savings
• EveryDay Personal Account
• GoalSave
• Debit Card
• Bill Payment Business Transactions & Savings
• Lifestyle VAS • EveryDay Business Account
• GoalSave
• Bulk Payments (pay-to-ID)
Retail Lending
• Buy Now Pay Later
• Unsecured Loans
• Salary Advance
Business Lending
3rd Party Products • Credit Card
• Insurance • Merchant Advance
• Credit Card • Working Capital Loans
• Investment
Legend: Grey text: products currently in pipeline
7We have a broad-based aspirational appeal that attracts customers from the
underserved to the mass affluent.
Over 40% of customers are ~50% of SME customers are Up to 33% higher usage
above 35 years old younger than 35 years old amongst women on certain
transaction types
16-25 26-35 36-45 >46 16-25 26-35 36-45 >46
16% 14% 17%
25%
3.3 million 54,400
customers SMEs
28% The Female Economy
42% 33% FinTech of the Year award
25% 2020
Successfully acquired banked Strong proposition appeal to Driving financial inclusion to
customers who have 20+ years of young entrepreneurs and sole empower underserved women
relationship with the incumbents proprietors of small businesses and fulfil their financial needs
8Customers are depositing more due to increasing trust and loyalty.
monthly gross inflow of deposits monthly average savings deposits by vintage (ZAR)
Monthly inflows (ZAR b) 30-day active base1 (%) Average savings deposit per savings customer
10,000
2.8 75
63%
2.4 59% 59% 59% 60% 62% 62% 8,000
55% 55% 56% 56% 57% 60
2.0
6,000
1.6 45
2.5 2.5 2.6 4,000
1.2 2.4 30
1.9 1.9 2.0
0.8 1.8
1.4 1.5 1.5 2,000
1.2 15
0.4
0.0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
J J A S O N D J F M A M
Number of month since onboarding
2020 2021
Total deposit Customer May-21 Dec-20 Jun-20 Dec-19
balance 2.0 2.1
onboarding
1.2 1.3 1.4 1.5 1.6 1.6 1.6 1.7 1.7 1.9 Mar-21 Sep-20 Mar-20 Sep-19
(ZAR b) month
Footnote: (1) 30-day active base refers to revenue generating customers in the past 30 days.
9Customers are transacting more as we strengthen our relationships with
them over time.
total number of monthly transaction by vintage total number of unique monthly transactions by vintage
No. of transaction per month per active account Unique type of transaction per month per active account
12,0 4,0
10,5
3,5
9,0
3,0
7,5
2,5
6,0
4,5 2,0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 0 2 4 6 8 10 12 14 16 18 20 22
Number of month since onboarding Number of month since onboarding
Customer May-21 Dec-20 Jun-20 Dec-19
Customer May-21 Dec-20 Jun-20 Dec-19 onboarding
onboarding Mar-21 Sep-20 Mar-20 Sep-19
Mar-21 Sep-20 Mar-20 Sep-19 month
month
10TymeBank’s operating costs reduces as the bank continues to scale.
Quarterly operating expenses vs. customer base
Total Bank Customer Operating Expenses (excl. D&A)
Operating expenses (ZAR m) Total bank customers (m)
400 4 We are continuously
optimising our cost
315
1 -12% base.
296 295
300 284 3 • Reshaped distribution
270 272
260
241 249 costs through
restructuring of
200 2 partnership commercial
arrangements around
volume and
performance
100 1
• Optimised technology
and external services
spend through smarter
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 use of such resources
2019 2020 2021
Footnote: (1) Excludes one-off expenses of external consulting fees for bank build and one-off VAT expenses relating to the Special Voluntary Disclosure Program to disclose offshore assets and income. .
11TymeBank has a sustainable structural advantage over incumbents.
Retail ops expenses per customer (ZAR) comparison of retail cost-to-income ratio comparison of average Jaws ratio
Revenue growth rate net of expenses growth rate
(excludes LIE)
2 626
13%
2 260 2 240 2 308
62%
59% 58%
50%
40%
25%
542 1%
329 -2% -1%
0% 0%
Steady State Steady State
FY21 (Average from
(Average from
FY25 to FY30) FY25 to FY30) Average from FY17 to FY20
12TymeBank’s high-tech high-touch model compares well with other digital banks
despite it is still at an early growth stage.
total funding2 total funding per
launch & breakeven year1 GTM approach key channels
(US$ m) customer1,2 (m) cust’r (US$)
3.5 years Physical retail
2019 | 2022f 312 3 104
Ecosystem
2013 | unknown 1,500 34 44 Credit Card
2013 | unknown 1,400 12 117 Mobile App
3.5 years
2017 | 2020 922 2 461 Mobile App
5 years Multi-currency
2015 | 2020 916 13 70
Wallet App
8 years
2013 | 2021f 819 7 137 Mobile App
Financial
2015 | unknown 573 5 117
Marketplace
2006 | 2009
3 years
370 13 28 Credit card,
Lifestyle Ecosystem
1.7 years Total funding of
12 N/A Digital / Social
2017 | 2019 Kakao Corp at $1.6b Ecosystem
Footnote: (1) Singapore Fintech Association & Fintech Control Tower: Digital Challenger Banks (2019); Bloomberg. (2) Medici: Neo Banking 2.0 (2020); Crunchbase; Craft.co; Company Releases Legend: Profitable year
13Covid-19 has imposed significant challenges in South Africa, but TymeBank
has shown resilience through the pandemic.
newlytotal
acquired
bank bank customer
customer (‘000)
(million) unique
unique
daily
daily
digital
digital
channel
channel
user
user
(‘000) net promotor score (NPS)
SmartApp Internet Banking USSD
1 st 2 nd
lockdown lockdown Post lockdown
Avg. 126,000 per month
57.0% 56,6%
51.0% 50,8%
39,8% 40,8%
33,5%
26,9% 24,4%
Industry
2019
2020
J F M A M J J A S O N D J F M A M
2020 2021 2019 2020 2021
20201
Acquired 1.8 million new customer since the Step-change in digital adoption in SmartApp and Demonstrated operational excellence throughout
outbreak of COVID-19, with increased active USSD unique daily users in 2020 post lock- COVID-19, with uninterrupted customer servicing
customer base from 50% to 63%. down. (kiosk & web uptime at 99.9%) and improved
customer satisfaction.
Footnotes: (1) Based on an independent survey, conducted by Consulta, of ~12,500 customers in 2020.
14We forecast to breakeven in 2022 with a set of rapidly growing revenue
streams.
Revenue mix
Lifestyle value-added services & new revenue streams
We have consistently experienced strong uptake with our
transactional VAS (e.g., airtime, data, & electricity), and will
continue adding lifestyle VAS and new revenue streams to
drive growth momentum.
Insurance
Hollard has partnered with us to provide affordable micro-
insurance, with applications and claims processed in minutes.
FY20
High-frequency lending
Comprises of MoreTyme, TymeAdvance and our short-term
unsecured personal lending product. A combination of
merchant discount rates, fees and interest cover the cost of
funds and cost of risk.
Subscription bundles
Bundled account subscribers get more buying power in c. 60-70% of revenue from
MoreTyme, access to TymeAdvance, other salary-related FY23E existing products
benefits and free transactions.
Transaction fees Transactional VAS New revenue streams
Insurance Lifestyle VAS Treasury
15Adoption of digital financial services has accelerated in emerging
markets like the Philippines, which Tyme is entering next.
Tyme has partnered with the Gokongwei Group-led JG Summit, which operates a
diversified portfolio of businesses with 8 million loyalty members, to apply
for a digital banking license and expand financial access to underbanked and
under-served Filipinos.
Philippines
1.45m sqm floorspace 4,000 stores
nationwide
GDP per capita
13 47
population growth (2020-23)1
108m
markets in ASEAN product
6.9% & Oceania brands
smartphone
penetration2
underbanked or
unbanked3
22.3m passengers
carried 1,300 authorized
agents
52% 78% 232 properties 9,000 retail
partners
Footnotes:
(1) Economist Intelligence Unit (2019). The numbers are not adjusted for Covid-19. (2) From We Are Social (2020). (3) From the report “ Fulfilling Its Promise – The
future of Southeast Asia’s digital financial services”, by Bain & Company, Google and Temasek
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