Latest news with #R400-million
Daily Maverick
20 hours ago
- Business
- Daily Maverick
TymeBank's R750m lending leap via acquisition of SanlamTyme JVCo
As the Competition Tribunal approval clears the way for TymeBank's acquisition of SanlamTyme JVCo and the SPL loan book, CEO Karl Westvig's commitment to fair lending faces its biggest test yet. The last time TymeBank CEO Karl Westvig spoke to Daily Maverick, he made bold promises about the digital bank's approach to loan books. 'The mission has always been to be able to profitably bank an entry-level customer… And it's not through the cross sell. It's through core banking,' he insisted. This is banking philosophy 101 from someone who clearly reads the right textbooks, but the market has a way of testing such noble intentions. TymeBank is paying R31.5-million for the 50% JVCo stake, plus approximately R400-million for half of Sanlam's loan book, plus another R320-million for a reference share entitling it to half of the credit life insurance profits from the JVCo loan book. That's a R750 million bet on an expanded lending business for a bank that has built its reputation on being different. 'These are some of the most abused people in the world,' Westvig acknowledged when previously discussing his predominantly low-income customer base. It's rare blunt honesty from a banking executive about the vulnerable position of South Africa's unbanked and underbanked population. Walking in Capitec's shadow Westvig was quick to draw a comparison with the titan of Techno Park that lords over SA's banking sector. 'Capitec fundamentally was a lending business… We've built our business as a transaction-led and savings-led bank.' It was a fair point, but also slightly disingenuous. Capitec's lending-first approach has made it one of South Africa's most profitable banks, particularly among lower-income customers. TymeBank's transaction and savings model might sound more palatable, but profitability in banking, especially when serving entry-level customers, typically requires some form of credit extension. Which brings us to the elephant in the room: this SanlamTyme acquisition is precisely about getting into lending in a bigger way. The question becomes whether TymeBank can maintain its 'fair and reasonable and competitive' lending promise while dealing with the realities of default rates and collection challenges that come with unsecured lending to financially vulnerable customers. Playing the loan game Here's the challenge: TymeBank is inheriting an existing loan book from Sanlam Personal Loans. The collection practices, interest rates, and terms of these existing loans were set by Sanlam, not TymeBank. How the digital bank handles this transition, particularly any customers who may be struggling with repayments, will be the first real test of Westvig's non-predatory commitment. The broader South African lending market is notorious for aggressive collection practices, astronomical interest rates on unsecured loans, and terms that can trap borrowers in cycles of debt. TymeBank's entry into this space, regardless of good intentions, puts it in direct competition with established players who have built profitable businesses on precisely the practices Westvig claims to oppose. What this means for you Expect TymeBank to launch more personal loan options soon, but without the exploitative hooks. If you've been excluded from formal credit before, this deal could open the door. For South Africans tired of tiered fees and opaque charges, TymeBank just got a lot more powerful. The numbers will tell the story The transaction's longstop date is 31 March 2026, with Sanlam planning to reinvest the proceeds into its broader growth strategy. That gives TymeBank roughly 18 months to prove that its approach can work at scale in the lending business. The success of this venture will ultimately be measured not by Westvig's well-intentioned statements about financial inclusion and fair lending, but by TymeBank's loan loss provisions, default rates and, most importantly, customer complaints about collection practices in the quarters ahead. If TymeBank can indeed provide competitive, fair lending to South Africa's underbanked population while maintaining profitability, it would represent a genuine breakthrough in financial inclusion. But the graveyard of financial services is littered with good intentions that couldn't survive market realities. DM
Daily Maverick
3 days ago
- Business
- Daily Maverick
Sanlam merger to test TymeBank's no predatory lending promise
As the Competition Tribunal approval clears the way for TymeBank's acquisition of SanlamTyme JVCo and the SPL loan book, CEO Karl Westvig's commitment to fair lending faces its biggest test yet. The last time TymeBank CEO Karl Westvig spoke to Daily Maverick, he made bold promises about the digital bank's approach to loan books. 'The mission has always been to be able to profitably bank an entry-level customer… And it's not through the cross sell. It's through core banking,' he insisted. This is banking philosophy 101 from someone who clearly reads the right textbooks, but the market has a way of testing such noble intentions. TymeBank is paying R31.5-million for the 50% JVCo stake, plus approximately R400-million for half of Sanlam's loan book, plus another R320-million for a reference share entitling it to half of the credit life insurance profits from the JVCo loan book. That's a R750 million bet on an expanded lending business for a bank that has built its reputation on being different. 'These are some of the most abused people in the world,' Westvig acknowledged when previously discussing his predominantly low-income customer base. It's rare blunt honesty from a banking executive about the vulnerable position of South Africa's unbanked and underbanked population. Walking in Capitec's shadow Westvig was quick to draw a comparison with the titan of Techno Park that lords over SA's banking sector. 'Capitec fundamentally was a lending business… We've built our business as a transaction-led and savings-led bank.' It was a fair point, but also slightly disingenuous. Capitec's lending-first approach has made it one of South Africa's most profitable banks, particularly among lower-income customers. TymeBank's transaction and savings model might sound more palatable, but profitability in banking, especially when serving entry-level customers, typically requires some form of credit extension. Which brings us to the elephant in the room: this SanlamTyme acquisition is precisely about getting into lending in a bigger way. The question becomes whether TymeBank can maintain its 'fair and reasonable and competitive' lending promise while dealing with the realities of default rates and collection challenges that come with unsecured lending to financially vulnerable customers. Playing the loan game Here's the challenge: TymeBank is inheriting an existing loan book from Sanlam Personal Loans. The collection practices, interest rates, and terms of these existing loans were set by Sanlam, not TymeBank. How the digital bank handles this transition, particularly any customers who may be struggling with repayments, will be the first real test of Westvig's non-predatory commitment. The broader South African lending market is notorious for aggressive collection practices, astronomical interest rates on unsecured loans, and terms that can trap borrowers in cycles of debt. TymeBank's entry into this space, regardless of good intentions, puts it in direct competition with established players who have built profitable businesses on precisely the practices Westvig claims to oppose. What this means for you Expect TymeBank to launch more personal loan options soon, but without the exploitative hooks. If you've been excluded from formal credit before, this deal could open the door. For South Africans tired of tiered fees and opaque charges, TymeBank just got a lot more powerful. The numbers will tell the story The transaction's longstop date is 31 March 2026, with Sanlam planning to reinvest the proceeds into its broader growth strategy. That gives TymeBank roughly 18 months to prove that its approach can work at scale in the lending business. The success of this venture will ultimately be measured not by Westvig's well-intentioned statements about financial inclusion and fair lending, but by TymeBank's loan loss provisions, default rates and, most importantly, customer complaints about collection practices in the quarters ahead. If TymeBank can indeed provide competitive, fair lending to South Africa's underbanked population while maintaining profitability, it would represent a genuine breakthrough in financial inclusion. But the graveyard of financial services is littered with good intentions that couldn't survive market realities. DM
IOL News
6 days ago
- Politics
- IOL News
Number of jobs affected by Donald Trump's tariffs' on South Africa likely higher than recognised
Letters to the Editor. Image: Supplied ICJ case against Israel may be invalid South Africa was once hailed as the 'darling of the world' – thanks largely to Madiba magic and the peaceful transition from apartheid. But today, the country is barely recognisable. With crises piling up on every front, the ANC-led government appears increasingly out of its depth, especially in foreign affairs. Recent claims have emerged implicating President Cyril Ramaphosa and senior government figures in potentially having had prior knowledge of the October 7, 2023 Hamas attack on Israeli and American citizens attending a music festival. In a recent podcast hosted by Byron Shepherd, lobbyist Justin Lewis alleged that a R400-million lawsuit may be looming against Ramaphosa for this alleged complicity. If these allegations prove true, the implications are enormous – not just for South Africa's credibility, but also legally, especially under executive order 14204 signed by US President Donald Trump. That order allows for serious consequences for foreign actors found to be aiding those targeting US citizens or leaders. While these are yet unproven claims, they are nonetheless deeply concerning. Hamas, often misleadingly labelled a 'resistance movement,' is not a state and is not party to the International Court of Justice. If the ANC – particularly through former foreign minister Naledi Pandor – had prior knowledge of the attack, as some are suggesting, and used it to build a legal case against Israel at the ICJ, then the legitimacy of that case must be questioned. This raises a disturbing possibility: that South Africa may have politically or financially gained from a tragedy of mass civilian international legal institutions for political ends erodes their credibility and damages South Africa's reputation. If these allegations are substantiated, they could trigger global backlash and diplomatic isolation – not to mention profound national shame. Before pointing fingers at other sovereign nations, South Africa must confront its own festering crises: rampant crime, poverty, corruption, and the ongoing horror of farm murders – issues that our government continues to deny or ignore. | L Oosthuizen Durban Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Malema's mixed messages For its hilarity, hyperbole and hypocrisy, EFF leader Julius Malema's rant at the weekend claiming US President Donald Trump poses a danger to global stability would have been more appropriate if featured among a list of jokes. Since his debut on the world stage when Trump screened the little demagogue exhorting the slaughter of whites, Malema's opinion of himself has challenged the size of his red beret. Fancying himself as a mentor on the world stage, his advocacy that ties with imperialist powers must be cut is laughable given his solid siding with the imperialism of Marxism-Leninism. Simultaneously it is also contradictory to assert that the EFF is positioned 'as an enemy of global imperialism.' In a word salad of 'isms' between imperialism, capitalism and socialism Malema seems confused about when capitalism is the enemy. It appears to bother him that Trump might destroy capitalism 'inadvertently' because his approach to it is 'illiterate". Grand stuff, indeed, from Limpopo province's sage in adjudicating America's highly successful capitalist president .Just how Malema's goal of socialism is supposed to bestow its enlightenment on the world is also fuzzy. He says if Trump destroys capitalism that 'will kill any and all possibilities of socialist economic order.' Of course, it is common knowledge, as Joe Slovo once conceded, that for the top order of socialists to live in grand style, it is necessary to exploit the pillars of capitalism. Cuba's billionaire socialist Fidel Castro exemplified that magnificently. The ultimate contradiction of Malema's entire muddled broadside against capitalism is that he is a major beneficiary of it and as such a hypocrite of note. | DR DUNCAN DU BOIS Bluff Govt failure on tariffs will cost us dearly As a practicing labour lawyer and an individual who sits on the Portfolio Committee of Parliament with regard to employment and labour, I believe that the estimate of the loss of 100 000 jobs is actually low over the course of the next six months. Unfortunately, it is incredibly difficult to try and claw back these jobs and it will take years. In this instance I believe that government has failed us completely. | MICHAEL BAGRAIM Cape Town There's hope yet for the Holy Land The mayhem in Gaza with the IDF let loose by Benjamin Netanyahu like a pack of marauding wolves will sadly remain a stain on the Israeli people for years to come … most of whom want peace and don't trust their government according to the Times of Israel. The legacy that will be left behind in Palestinian minds following this heinous war….those young Palestinian children who will survive the slaughter and those yet to be born, will define who they are. The lesson they will take forward including the past 78 years of living on charity and handouts by those who stole their land will be how not to do it. Palestinians will show the world instead that there is a better way based on humanity peace co-operation and respect and that chasing a bee around a room full of people with a machine gun was never the answer and solved nothing. As the world prepares for the establishment of the State of Palestine alongside the State of Israeli so will these ugly days fade into the mists of time, but will never be forgotten! | Colin Bosman Newlands Palestinian recognition With the UK set to follow France and formally recognise a Palestinian state as early as September, unless Israel agrees to a ceasefire in Gaza and a two-state solution, it will be very difficult for Australian Prime Minister Anthony Albanese and other national leaders not to respond in kind. | Eric Palm Gympie, Australia Financial freedom or funeral? In today's patriarchal time, a woman who depends on a man is like a lamb tied outside a butcher's shop – sooner or later, she'll be slaughtered. Why should a woman earn her own money? Why is her own bank account necessary? Why should she beg for a seat she built? Because if she doesn't – this society will feast on her flesh and gulp it down. What happens to women who depend on men? Look around. They get raped, thrown out, beaten like animals, used like tissue paper, and dumped like trash. She says one word back, and she's slapped. She asks for what's hers, and she's told to shut it before she gets replaced. She gets divorced, and suddenly, she's a sinner. Her honour? Gutted. Her name? Trash. What did he lose? Nothing. What did she lose? Everything. The man at fault walks free, laughing, drinking tea, and marrying some naïve girl half her age. Here's why earning money is so important: If your husband divorces you, with no money, where will you live? How will you eat? Who will pay for your children's school? If your husband hits you , can you leave if you have no savings? No. You'll have to stay and suffer. If your husband marries again or has an extramarital affair, without your own income, you'll have to quietly accept this tormenting humiliation. If you become a widow, relatives might take your property. Without money, how will you fight them? If your family forces you to do something , without money, your 'NO' is just a desperate collapse. With money, it's a thunderous command. Many girls make the mistake of thinking that, 'my father/brother/husband will take care of me.' But the world sharpens its blades while you sleep. Men die. (Then you beg.) Men betray. (Then you suffer.) Men vanish. (Then you starve.) And your rescue fantasy? A coffin with pretty flowers. Still waiting for Prince Charming? Wake up , he doesn't exist. The only hero in your story is you. Society doesn't pity weak women, it preys on them. Earn. Save. Fight. | Yumna Zahid Ali Karachi, Pakistan DAILY NEWS
eNCA
05-07-2025
- Politics
- eNCA
Mchunu unveils crime-fighting strategy
CAPE TOWN - Police Minister Senzo Mchunu is hitting back hard against crime. He's assured South Africans he's spearheading amplified initiatives to crush criminal activity. Mchunu says the strategy is aimed at protecting the vulnerable, rooting out criminality, and rebuilding the public's trust. Stressing the urgency of the police mission, the minister highlighted the devastating impact of gang warfare in Cape Town, saying the metro's recent four waves of gang violence have claimed eighteen lives. The budget allocates R219.2-million to police the G20 conference later this year, R400-million for next year's Local Government Elections, and nearly R35-million to support the appointment of an additional Deputy Police Minister.
