6 things you need to know about Discovery Bank

15 November 2018 - 11:38 By Odwa Mjo
Discovery Group Executive Adrian Gore said he was excited about the launch of the bank.
Discovery Group Executive Adrian Gore said he was excited about the launch of the bank.

Financial Services company Discovery Group announced on November 13 that it will launch the world's first behavioural bank. 

The fully digital bank is expected to launch in March 2019 to give South Africans a different banking experience. 

"Given our current poor savings culture, and the need for personalised banking that is transparent, equitable, efficient and controllable, the case for disruption is clear. We aim to address this need by leveraging our Share-Value Model to build the world's first behavioural bank" said Discovery Group Executive Chair Adrian Gore

Here are six things you need to know about Discovery Bank.

1. The Vitality Money application 

The banking system will feature the Vitality Money Application, which will provide incentives for "good" financial behaviour. One of the goals require a financial needs analysis, which could lead to discounts on life insurance premiums. 

2. The bank will have over 200 features 

These features will allow enable customers to set up budgets and track spending. They will also contribute towards improving discount and interest rates.

3. Financial behaviour incentives 

Good financial behaviour can reap rewards such as discounts on flights, gym memberships, fuel, Uber trips and retail discounts.

4. Totally digital

You can access the bank from anywhere, anytime as long as you have a smartphone. Everything is done digitally, so account holders can avoid long bank queues.

5. 10% black ownership 
According to Gore, 10% of the bank's shares will be owned by black clients. 

6.Dynamic interest rates 

In a  first of its kind in the South African banking industry, the feature will link interest rates directly to the financial behaviour of an account holder.

This will allow clients to earn more interest on savings and pay less interest on credit. This will all be based on the financial behaviour of the account holder.