Sanlam is developing a comprehensive “super” app that will integrate its full range of services, including transactional banking, as it strengthens its partnership with TymeBank to enter the banking sector.
The app, created in collaboration with TymeBank, which will soon rebrand as GOtyme in South Africa, will offer features such as savings accounts, money transfers, bill payments, electricity and data purchases, and credit applications.
According to Business Day, Sanlam plans to overhaul its loyalty programme, consolidating its various offerings into a single, streamlined version that will be incorporated into the app, set for release in the first half of next year.
To reinforce the strong ties between Sanlam and TymeBank, both backed by Patrice Motsepe’s investment entities, Ubuntu-Botho and African Rainbow Capital Investments, TymeBank will adopt branding colours aligned with Sanlam’s and introduce a co-branded card.
The chief executive of Sanlam Life and Savings, Anton Gildenhuys, explained that the group aims to enhance its dominant market position in South Africa by expanding its solutions and appealing to younger, tech-savvy consumers. He noted that Sanlam’s core offerings, such as risk and savings products, investments, and retirement planning, are less appealing to younger audiences who prioritise credit and transactional services.
Gildenhuys emphasised the significance of the strategic partnership with TymeBank, describing it as a vital step to integrate the bank into Sanlam’s ecosystem, pending regulatory approval.
TymeBank’s chief executive, Karl Westvig, outlined four key areas of focus for the partnership. The first is a lending business through a 50:50 joint venture announced earlier this year.
Westvig revealed that the partnership involves a complete overhaul of TymeBank’s technology infrastructure, with a new app slated for launch in January. The app is currently in a testing phase with select users and is built on a cutting-edge, cloud-native technology platform. Additionally, Sanlam will exclusively provide insurance products to TymeBank’s customers, and the partnership will integrate a unified loyalty programme.
Westvig added that Sanlam customers will benefit from a fee-free bank account with access to some of the lowest transaction fees available. With a combined customer base of 17 million, the two companies have access to a vast audience and extensive data resources.
TymeBank is also preparing to introduce credit cards in the coming year.
In August, the Competition Tribunal gave unconditional approval to the merger between TymeBank and Sanlam’s personal loans business.
Meanwhile, Sanlam’s competitor, Old Mutual, is gearing up to launch its own banking service, OM Bank, before the end of the year, marking its return to the banking sector after divesting from Nedbank in 2018.
Rather than deploying ATMs nationwide, OM Bank will partner with retail chains to make its services accessible to customers.