Sa Bu T V CASE STUDY: NEW DIGITAL BANKING IN SOUTH AFRICA The past decade has seen major digital transformations for most industries (if not all indus tries). In the banking sector, due to the data-intensive and time-sensitive nature of its oper ations, the digital transformation has put enormous pressure on innovation. It is the highest priority (and challenge) for banks to improve and expand business processes continually with digital adoption. If banks do not keep up with the digital transformation, they can very quickly become obsolete owing to intense competition from players around the world. TymeBank, owned by African Rainbow Capital Investments (ARC Investments), is South Africa's first digital bank to be launched, with an EveryDay transaction account on which DECISION MAKING 6 no monthly bank charges are payable. What is a digital bank? Everything happens on- o physical bank branches. TymeBank works in partnership with Pick n Pay and line with no Boxer supermarkets, providing physical spaces (through kiosks) for the bank's clients to access these banking services. At most Pick n Pay and Boxer stores there is a TymeBank mini-bank. If consumers experience problems, they can contact TymeBank directly or go to their nearest Pick n Pay or Boxer store where there is a trained employee ready to help every day. At these stations, consumers can use Wi-Fi at no extra cost, which reduces the consumers' total banking costs even further. Consumers have to pay for online banking at other banks at their own expense. There are no monthly bank charges and consumers work on a pay-as-you bank system which basically means that there are no monthly bank account fees but there is an administrative fee, R2 per deposit and R4 per withdrawal at affordable banking, but also for accessible banking. a other banks' ATMs. TymeBank has seen a huge opportunity in the market, not only for ok on nd TymeBank's mission is: To make meaningful financial inclusion by making banking more accessible to all South Africans. Thus, TymeBank seeks to make banking more accessible to the lower class and even those who are between professions, currently unemployed or do not have a formal address. ed. esiin agers 20 Since February, with the launch of TymeBank in the South African market, to date they have opened accounts for more than 330 000 consumers. Of these consumers, 26% are between the ages of 36 and 45 and 14% are between 46 and 55 years old. These 30 figures indicate that it is not only the youth who use this new technology. For the most part, consumers opened accounts at the Pick n Pay or Boxer stores' kiosks (78%), while 22% opened accounts online through the bank's website. JI 1. ed for CE To open a TymeBank bank account a consumer logs in online through the TymeBank website. This process is incredibly simplified by using efica. TymeBank only needs an ID number and a cellphone number for verification purposes. To activate and obtain the debit card, the customer must go to the nearest Pick n Pay or Boxer store with a TymeBank kiosk. The customer must take his or her cellphone with the number registered on the website to the kiosk. At the kiosk, fingerprints must be scanned, the account verified and then the machine at the kiosk prints the debit card (free) with all the customer's details. This whole process takes less than 10 minutes (although Pick n Pay states in their marketing commu- nications that it takes 5 minutes), online registration takes about 3 minutes and fingerprint scanning, verification and card printing take about 4 minutes. After that, a customer can download the application from the Google Play Store or the Apple App Store. 1 If a customer has a SmartShopper loyalty card at Pick n Pay, he or she will receive double points when the TymeBank bank card is used as a payment method. Sources: Business Report. 2019. TymeBank, SA's first digital bank is officially live. https://www.iol.co.za/business-re- port/economy/tymebank-sas-first-digital-bank-is-officially-live-19514418 (accessed on 29 May 2019). Tyme Bank. 2019. About us. 2019. https://www.tymebank.co.za/about (accessed on 29 May 2019). Vanek, M. 2019. The Big Bank Theory: South Africa's banks of the future. https://www.forbesafrica.com/ wealth/2019/06/04/the-big-bank-theory-south-africas-banks of the future (accessed on 29 May 2019). 139 Case study questions 1. To start Tyme bank, what type of decision did African Rainbow Capital Investments (ARC Investments) make and under what condition is this decision typically made? Motivate your answer. w.daily -friends gement 9th ed 015. S Publishers Sa Bu T V CASE STUDY: NEW DIGITAL BANKING IN SOUTH AFRICA The past decade has seen major digital transformations for most industries (if not all indus tries). In the banking sector, due to the data-intensive and time-sensitive nature of its oper ations, the digital transformation has put enormous pressure on innovation. It is the highest priority (and challenge) for banks to improve and expand business processes continually with digital adoption. If banks do not keep up with the digital transformation, they can very quickly become obsolete owing to intense competition from players around the world. TymeBank, owned by African Rainbow Capital Investments (ARC Investments), is South Africa's first digital bank to be launched, with an EveryDay transaction account on which DECISION MAKING 6 no monthly bank charges are payable. What is a digital bank? Everything happens on- o physical bank branches. TymeBank works in partnership with Pick n Pay and line with no Boxer supermarkets, providing physical spaces (through kiosks) for the bank's clients to access these banking services. At most Pick n Pay and Boxer stores there is a TymeBank mini-bank. If consumers experience problems, they can contact TymeBank directly or go to their nearest Pick n Pay or Boxer store where there is a trained employee ready to help every day. At these stations, consumers can use Wi-Fi at no extra cost, which reduces the consumers' total banking costs even further. Consumers have to pay for online banking at other banks at their own expense. There are no monthly bank charges and consumers work on a pay-as-you bank system which basically means that there are no monthly bank account fees but there is an administrative fee, R2 per deposit and R4 per withdrawal at affordable banking, but also for accessible banking. a other banks' ATMs. TymeBank has seen a huge opportunity in the market, not only for ok on nd TymeBank's mission is: To make meaningful financial inclusion by making banking more accessible to all South Africans. Thus, TymeBank seeks to make banking more accessible to the lower class and even those who are between professions, currently unemployed or do not have a formal address. ed. esiin agers 20 Since February, with the launch of TymeBank in the South African market, to date they have opened accounts for more than 330 000 consumers. Of these consumers, 26% are between the ages of 36 and 45 and 14% are between 46 and 55 years old. These 30 figures indicate that it is not only the youth who use this new technology. For the most part, consumers opened accounts at the Pick n Pay or Boxer stores' kiosks (78%), while 22% opened accounts online through the bank's website. JI 1. ed for CE To open a TymeBank bank account a consumer logs in online through the TymeBank website. This process is incredibly simplified by using efica. TymeBank only needs an ID number and a cellphone number for verification purposes. To activate and obtain the debit card, the customer must go to the nearest Pick n Pay or Boxer store with a TymeBank kiosk. The customer must take his or her cellphone with the number registered on the website to the kiosk. At the kiosk, fingerprints must be scanned, the account verified and then the machine at the kiosk prints the debit card (free) with all the customer's details. This whole process takes less than 10 minutes (although Pick n Pay states in their marketing commu- nications that it takes 5 minutes), online registration takes about 3 minutes and fingerprint scanning, verification and card printing take about 4 minutes. After that, a customer can download the application from the Google Play Store or the Apple App Store. 1 If a customer has a SmartShopper loyalty card at Pick n Pay, he or she will receive double points when the TymeBank bank card is used as a payment method. Sources: Business Report. 2019. TymeBank, SA's first digital bank is officially live. https://www.iol.co.za/business-re- port/economy/tymebank-sas-first-digital-bank-is-officially-live-19514418 (accessed on 29 May 2019). Tyme Bank. 2019. About us. 2019. https://www.tymebank.co.za/about (accessed on 29 May 2019). Vanek, M. 2019. The Big Bank Theory: South Africa's banks of the future. https://www.forbesafrica.com/ wealth/2019/06/04/the-big-bank-theory-south-africas-banks of the future (accessed on 29 May 2019). 139 Case study questions 1. To start Tyme bank, what type of decision did African Rainbow Capital Investments (ARC Investments) make and under what condition is this decision typically made? Motivate your answer. w.daily -friends gement 9th ed 015. S Publishers