Financial services firm TymeBank intends to acquire financial technology company Retail Capital for an undisclosed amount, investment management company African Rainbow Capital (ARC) Investments has announced.
"The proposed transaction will support TymeBank’s offering to its business banking clients. It will also see Retail Capital’s lending expertise to small and medium-sized enterprises (SMEs) being combined with TymeBank’s deposit base and operations to serve a broader customer base," ARC says.
The proposed transaction will see Retail Capital become a division of TymeBank and form the foundation of its expanded business banking offering.
Retail Capital lowers the barriers to funding for SMEs through an easy, three-step online application process. In the past ten years, the company has provided funding of more than R5.5-billion to more than 43 000 business owners in South Africa, making it the largest SME funder of its kind in the sector.
TymeBank currently has more than five-million individual customers and more than 100 000 business banking customers, ARC notes.