ABSTRACT

TymeBank navigates South

Africa's banking scene by
prioritizing customer needs.
Successfully cracking the
code of financial services
adoption, it stands out with a
disruptive brand and
innovative campaigns. The
challenging competitive
landscape, marked by price
wars and digital evolution,
requires strategic responses.
TymeBank faces heightened
competition and pricing
challenges in customer
acquisition. The suggested
course: maintain a balanced
marketing approach,
innovate cautiously, and stay
agile for sustained growth.
Tymebank in 2019: Chasing the Millions

Course Title: The Fintech

Revolution-Concepts,
Challenges, and
Opportunities

Instructors:
Dr. Syed Zahoor Hasan
Sharjeel Shahab

Understanding of the Situation:

 The analysis demonstrates a solid understanding of the South African banking landscape, TymeBank's
challenges, and the broader industry dynamics.

 Key opportunities and limitations are accurately identified, showcasing a comprehensive grasp of the
presented information.

 The challenges faced by banks, especially in terms of access to services, brand credibility, and
effective marketing.

Understanding of FinTech Concepts:

 The identification and application of FinTech concepts are evident in the discussion of TymeBank's
customer-centric approach, inclusive marketing, and the use of behavioral nudges.

 The sustainability aspect recognizes the need for continuous innovation in the FinTech space.

 The analysis effectively links FinTech concepts to TymeBank's strategies and success factors.

Assignment

1. What are opportunities and limitations in the South African Banking landscape? What are the
key problems that banks have addressed?
The South African banking landscape presents both opportunities and challenges for financial institutions.
Notably, there is a significant opportunity for banks to address the unbanked and underbanked population,
fostering financial inclusion. The adoption of a multi-channel marketing approach has proven effective in
reaching and acquiring customers, emphasizing the importance of brand credibility, particularly for new
entrants. However, challenges arise from limited resources and intense competition, with established and
emerging digital banks reshaping the competitive landscape at a rapid pace.

One primary issue has been the limited access to banking services for the unbanked and underbanked
segments. Many individuals, particularly in emerging economies, faced barriers to entry into the formal
financial system. In markets saturated with established players, new entrants and smaller institutions often
struggled to gain trust and credibility among consumers. Furthermore, the challenge of marketing
effectiveness loomed large for banks. Achieving a delicate balance between brand-building initiatives and
performance marketing was essential for optimal customer acquisition.

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2. What is “code” of financial services adoption that Tyme Bank cracked? Is this sustainable?

Tyme Bank's successful navigation of challenges in financial services adoption represents a noteworthy
"code" that revolves around a customer-centric paradigm, embodying sustainability through a
multifaceted approach. The key elements of this code are as follows:

 Customer-Centric Approach: TymeBank's focus on the customer's potential and financial goals
establishes a foundation for its code of adoption. By prioritizing the individual needs and aspirations
of customers, TymeBank differentiates itself from traditional banks, aligning with the contemporary
trend of personalized financial services.

 Support and Tools for Financial Goals: The "code" involves not only understanding customers but
actively supporting them in achieving their financial objectives. TymeBank goes beyond basic
banking services, providing tools and assistance that empower customers to manage and improve
their financial well-being.

 Inclusive Marketing Strategies: The adoption code includes a commitment to inclusive marketing.
TymeBank's multi-channel campaigns and partnerships with retail outlets extend its reach to diverse
consumer segments. This strategy ensures that the bank is accessible and appealing to a wide
audience, contributing to the inclusivity of its services.

 Social Impact Initiatives: TymeBank's engagement in social impact initiatives, such as employing
in-store brand ambassadors from local communities through a not-for-profit enterprise, is integral to
its adoption code. This approach not only fosters community connections but also enhances brand
credibility through a positive societal contribution.

 Behavioral Nudges in Direct Marketing: The use of targeted behavioral nudges in direct marketing
is a distinctive element of TymeBank's adoption code. By understanding and influencing customer
behavior, the bank encourages immediate account usage. This personalized approach aligns with the
contemporary trend of leveraging behavioral psychology in marketing strategies.

3. Describe Tyme Bank’s brand building and marketing strategy and how it compares to traditional
banks?
Tyme Bank's brand building and marketing strategy exhibit a distinct approach compared to traditional
banks, emphasizing innovation, inclusivity, and a customer-centric ethos. The "You’ve Got This"
campaign serves as a cornerstone in positioning TymeBank as a trustworthy and disruptive challenger,
breaking away from the more conservative image typically associated with traditional banks. One notable
aspect is the initial allocation of the marketing budget, favoring brand marketing. This strategic decision

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underscores TymeBank's emphasis on building a strong brand identity in the initial phases of its market
presence. However, the subsequent adjustment to achieve a balance with performance marketing reflects a
nuanced understanding of the need to not only establish the brand but also drive tangible customer
acquisition and engagement. Collaborative efforts with retail partners, marked by co-branded messaging
and in-store collateral, showcase TymeBank's innovative approach to marketing. Traditional banks often
rely on more conventional advertising channels, and TymeBank's engagement with retail partners
provides a unique touchpoint for potential customers, enhancing brand visibility in everyday consumer
spaces.

The emphasis on social impact and inclusive hiring practices distinguishes TymeBank from traditional
competitors. TymeBank’s use of in-store brand ambassadors and behavioral nudges is a departure from
traditional banking marketing.

4. Why is the competitive landscape getting difficult?

The competitive landscape for Tyme Bank in South Africa is intensifying, presenting significant
challenges for the emerging player. One key factor contributing to the increasing difficulty is the
phenomenon of price wars among banks. Traditional banks have strategically reduced prices on their low-
cost accounts, creating a competitive environment where pricing becomes a crucial factor in customer
acquisition. This price pressure poses a challenge for Tyme Bank in maintaining its value proposition and
attractiveness to customers, as competitors strive to offer more competitive rates.

Moreover, the digital banking sector is witnessing a rapid evolution, with innovative services being
actively promoted by competitors. The entry of digital banks like Discovery Bank and Bank Zero adds to
the complexity of the landscape. These players leverage advanced technology and novel services,
attracting customers seeking modern and convenient banking solutions. Tyme Bank, as a relatively new
entrant, must navigate this competitive terrain by continually innovating and staying abreast of digital
trends to remain appealing to its target market.

(Refer to Exhibit 1 for snapshot of the key features, customer bases, and recent developments for
TymeBank and its competitors in the South African banking landscape.

5. What are the key challenges to Tyme Bank in maintaining momentum in customer acquisition?
In terms of customer acquisition, Tyme Bank faces several challenges that could impact its momentum.
Firstly, there is an escalation in overall competition, with both traditional and digital banks aggressively
targeting the same customer segments. This heightened competition requires Tyme Bank to differentiate
itself effectively to stand out in the crowded market. Additionally, the pressure from competitors reducing
prices on their accounts adds complexity to Tyme Bank's customer acquisition strategy, as potential
customers weigh various options based on cost considerations.

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Furthermore, the digital evolution in banking services poses a challenge for Tyme Bank to maintain
momentum in customer acquisition. The rapid pace of technological advancements requires Tyme Bank
to continually innovate its offerings, ensuring that it meets the changing expectations of a digitally savvy
customer base. Adapting to these shifts and providing a seamless and up-to-date digital banking
experience is crucial for sustaining customer acquisition momentum amidst the evolving competitive
landscape.

6. What are the key decisions Tyme Bank is facing? What should be their course of action?
In terms of key decisions, TymeBank must carefully allocate the remaining budget between brand and
performance marketing. Additionally, launching specific campaigns for the next four months and
introducing new products, including business accounts and personal loans, are critical decisions. The
recommended course of action involves maintaining a balanced marketing approach, focusing on both
brand and performance marketing for sustained growth. Introducing new products should be approached
cautiously, considering market dynamics and customer needs. TymeBank must remain agile in responding
to changes in the competitive landscape and prioritize customer retention alongside acquisition to
navigate the increasing competition effectively.

(Refer to Exhibit 2 for detailed information on TymeBank's proposed campaign components and budget
allocation.)

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Exhibit 1

Recent
Bank Key Features Customer Base Bank
Developments

Customer-centric, Launching
inclusive EveryDay account
TymeBank Rapidly growing TymeBank
marketing, and GoalSave
mobile-led savings tool

Capital-heavy, full
22,000 customers Launched in the
Discovery Bank retail offering, Discovery Bank
since June 2019 past two months
mobile-led

Dropped monthly
fee of Pay As You Dropped monthly
Nedbank Established Nedbank
Use account to fees in April 2019
zero

Launched a new Introduced new

Smaller
African Bank no-monthly-fees account in May African Bank
competitor
account 2019

Founded by high-
Anticipated
Bank Zero Exclusively app- profile former Bank Zero
launch in mid-
(Upcoming) only mutual bank First National (Upcoming)
2020
Bank executives

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Exhibit 2

Budget
Offer Components Objectives Core Message
Allocation
Customers who
Standalone, single Increase account
transact 5 times in
Win back your mobile text utilization among
the month can win Not specified
monthly spend! channel different customer
back their
promotion segments
September spend
Drive account
Use TymeBank
utilization, churn
Multi-channel account 5x this Just less than half
reduction, account
Win your share blended brand and month for the of the March -
reactivation, and
of R1 million! performance chance to win a May 2019 ATL
secondary new
approach share of R1 spend
customer
million
acquisition
Build brand
Celebrate Paid digital, social affinity and Message to
reaching 1 and search, radio, credibility, drive celebrate reaching
Not specified
million and commuter customer 1 million
customers media acquisition and customers
activation
Basic Targeted at sole
Product trial
transactional proprietors and Not specified Not specified
introduction
Business Account micro-enterprises
Unsecured
personal loan
Uses retail
offering for
partners'
Product trial customers with
Personal Loan transactional data Not specified
introduction thin or no credit
for inclusive
history at the top
credit decisions
national credit
bureau
Co-branded Offered to a small
version of the Pilot project group of elders of
Not specified Not specified
bank account for introduction the Zion Christian
elders Church

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