TymeBank decides to stay aloof of unsecured lending

JOHANNESBURG – African Rainbow Capital Investments (ARC Investments) said on Friday that TymeBank had put on hold its foray into the unsecured lending space as a result of challenging market conditions in the wake of the Covid-19 outbreak.

The digital bank, which was launched in February last year, said in terms of the bank’s credit business, and specifically its unsecured lending proposition to customers, management was exercising significant caution in the context of a challenging economic environment.

“The bank is considering alternative credit products which do not carry the same longer-term risk as an unsecured term loan,” the bank said.

ARC Investments, Patrice Motsepe’s investment holding company, is a majority shareholder in TymeBank and has piloted the unsecured lending, but it was not formally launched.

TymeBank grew its customer base to 1.8million customers by the end of May, and the group said this milestone was well ahead of its growth schedule.