Proven success of Discovery’s Shared-value Bank to create value for clients

In just under two years since launching, Discovery Bank deposits are growing three times faster than the market, with strong growth in client spend of R12 billion. Discovery Bank is mobile-first and deposit-led, providing clients with sophisticated lending capabilities from the get-go. It is the 7th largest credit card provider in South Africa, with a 65% lower arrears rate compared with that of the market – having extended over R3.75 billion in credit.

“At the outset, we placed a dedicated focus on the successful migration of clients from the FNB joint venture to our Discovery Bank platform. While this was happening, all aspects of the Bank were fully operational, including our completely digital onboarding and compelling rewards structure and we’re pleased that 50% of clients have already upgraded to a higher product with Discovery Bank,” said Group Chief Executive, Adrian Gore.

Migrating roughly 223 000 clients to the Discovery Bank system required significant coordination with the support of Visa. “Since completing the migration, we have placed enormous emphasis on continuing to innovate and improve the customer experience, which is evidenced by how positively the latest rewards and digital enhancements have been received, and recent recognition by the Ombudsman for Banking Services as the Best Dispute Resolution Bank in the Smaller Bank Category,” said Gore.

Tremendous engagement in rewards and take-up of benefits

The Discovery Bank app, the main interface for all the Bank’s digital services, has a rating of 4.6, which is higher than that of the average banking app in South Africa. By November 2020, the app was downloaded more than 344 000 times, and, on average, Discovery Bank cards are swiped or tapped 1.4 times every second with more than 72 other banking transactions every minute.

The Bank also receives more than 44 000 calls each month and resolves 61% of client queries during the first interaction, indicating the quality and urgency of client service. A wide range of services and benefits are free, including: a 24/7 client contact centre; travel insurance with flight tickets purchased using Discovery Bank cards; access to a global concierge service to assist with travel planning and entertainment tickets; automatic warranty extension of up to 24 months; and short-term protection against theft and accidental damage of selected purchases made with Discovery Bank cards. Furthermore, Discovery Bank Purple clients have access to a relationship banker, Discovery Purple Servicing, and six free airport lounge visits with Discovery Bank Black or Purple, as well as priority lane access at Cape Town International and OR Tambo International airports.

Vitality Money significantly enhances the value proposition

The Bank's value proposition has been significantly enhanced through the AI-powered incentive programme, Vitality Money, more powerful Discovery Miles, and an intuitive client experience. In 2020, Discovery Bank clients earned in excess of 4 billion Discovery Miles and spent 3.1 billion Discovery Miles at various Discovery Bank partners. Additionally, clients were rewarded with over 1.6 billon Discovery Miles for healthy behaviour – testament of the merit of shared-value banking.

“Our experience over this first year has shown that our banking model, driven by incentives and rewards, is already proving successful in achieving its intended outcomes and changing people’s behaviour with their money. Building a completely new bank without legacy systems, has allowed us to combine innovative technology and digital capabilities, as seen with the addition of contactless banking solutions like Discovery Pay and virtual cards. With Discovery’s proven understanding of risk and behaviour change, we believe our Shared-value Bank – the first of its kind – will create a financially stronger society,” Gore concluded.

Read more about Discovery Bank’s growth, transactions and product innovations