TymeBank’s incoming CEO Cheslyn Jacobs aims to make the fledgling bank a top-three retail bank in the country across all metrics, including return on equity, in the next five years as the lender looks to up the ante and get a bigger slice of the mass market, dominated by Capitec.
The bank, which is approaching the 12-million customer mark after exponential growth since going to market in 2019, on Monday said Jacobs will take over from Karl Westvig in January, with the latter set to assume an advisory role.
Jacobs takes over the reins of a company poised for growth and leveraging different partnerships to build scale, including its partnership with SA’s largest church formation, the ZCC.
“We want to be one of the biggest retail banks this country has ever seen, and across any metric you can think of. Be it on return on equity, annual compound growth, or scale. For me, in the next five years, this business can be a top three retail bank across every single metric,” Jacobs said.
His comments throw down the gauntlet to Capitec, whose unparalleled growth since operationally and in the stock market ― thanks to its focus on vast, untapped low income earners ― has propelled it to the upper echelon of SA financial services industry.
Jacobs, now the bank’s chief commercial officer, has been with the company from day one, with his association with the company stretching back about 13 years.
He was quick to point out that his appointment does not herald a pivot in strategy.
“I don’t think you should expect any strategic changes. It’s a lot more of the same. That has been the beauty of our business. There has been a lot of continuity. We are going to focus a lot more strongly on execution excellence. By this I mean doing what we do better all the time,” Jacobs said.
“As we move into this next chapter, marked by an even sharper focus on customer experience, I’m excited to build on the incredible foundation our team has created.”
Jacobs takes over as TymeBank and Sanlam, which both have Patrice Motsepe’s investment vehicle as a top shareholder, deepen their relationship, with opportunities to cross-sell products among their customer base, which together is about 17-million in SA.
“Cheslyn’s deep understanding of our customers, strategy and people uniquely positions him to lead TymeBank into its next era,” TymeBank chair Thabani Jali said.
“It’s time to compete even harder for market share as we mature as a business. Under Cheslyn’s leadership, and with our talented team reshaping banking for all South Africans, TymeBank is geared to create even greater value for our customers and partners.”
It’s time to compete even harder for market share as we mature as a business.
— Thabani Jali, TymeBank chair
Westvig said: “The business is now entering an exciting new phase, and I look forward to continuing to support the team as TymeBank expands its brand presence and cements key strategic partnerships.”
Capitec’s enviable position, which has seen it amass a staggering 25-million clients, has seen both traditional and new players looking to steal its market share.
However, Capitec has not remained static and has kept on evolving and taking to market new products and adding to its impressive array of value-added services, with the group having a dominant position in the youth segment of the market.
Capitec is experiencing a surge in clients who earn more than R50,000 a month, indicating that the lender’s appeal is spreading. It reported in September that the number of customers earning more than R50,000 a month had increased by 24% in the six months to end-August.
The Stellenbosch-based lender now has 12-million clients aged 16-35, which is a 58% share of the segment.
TymeBank is not the only lender looking to make inroads into the mass market. Old Mutual’s banking proposition, OM Bank, is also targeting the mass market as it readies itself for its public launch.
The top brass at OM Bank are confident the fledgling lender will hit the ground running when it officially opens its doors this month after a robust soft launch that snapped up about 5,000 clients a day.
“Any bank that needs scale in SA needs to tap into the mass market,” Jacobs said.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.