GoTyme Bank's PH digital banking movement

GoTyme Bank, an exciting venture between Singapore's Tyme Group and the Philippine Gokongwei Group, is targeting the underbanked Filipinos.

While only a mere 5% of global digital challenger banks are profitable, it's surprising to note that the majority of these successful ventures are rooted in the Asia-Pacific region! This fact bolsters the strategic move of Tyme Group to relocate its headquarters to Singapore.

• Successful Precedent: Tyme Group's digital bank, TymeBank, has already left its mark in South Africa. Its novel approach of recruiting customers via in-store kiosks in large supermarket chains propelled the bank among the top five finance apps in the nation.

• Strong Partnership: GoTyme's strategic alliance with the Gokongwei Group, which owns JG Summit and boasts a $5B market cap, is a game-changer. This partnership paves the way for GoTyme to extend its reach to over 4,000 consumer-facing outlets across the Philippines.

• Bridging Physical and Digital: The bank maintains a healthy balance of physical and digital presence, with 290 kiosks stationed across the Philippines, anticipating expansion to 450 by the end of 2023. The bank's CEO, Albert Tinio, recognizes Filipinos' preference for a blend of physical and digital when it comes to embracing new concepts.

• Positive Start: GoTyme’s launch in the Philippines has been promising, amassing 300,000 sign-ups within just four months, 70% of which were in-person at its kiosks. The challenge in the spotlight now is to sustain this initial momentum and enhance customer engagement. Looking ahead, CEO Nathaniel Clarke aims to serve all Filipinos, including those residing outside metropolitan areas.

• Navigating Challenges: Clarke's vision, though ambitious, is not without obstacles. A limited national ID system and an underdeveloped credit bureau database pose significant challenges to KYC compliance and borrower evaluations.

• Beyond the Philippines: Tyme Group's ambitions are not confined to the Philippines. The group has its sights set on Vietnam - another market teeming with underbanked individuals, with plans to penetrate the market by 2024, if all goes according to plan.

The journey ahead for Tyme Group involves proving its ability to operate a profitable digital bank in the Philippines and demonstrating that its successful model can be replicated across various emerging markets.