Discovery Bank is taking on 750 new clients a day, putting it well ahead of its targeted run rate to reach its goal of between 600,000 and 700,000 total customers by 2024.
Hylton Kallner, CEO of Discovery Bank, told Business Day the bank had boosted its average client acquisition rate from about 600 per business day in December 2021. Kallner was speaking shortly after Discovery Bank unveiled a new “pay as you gym” offering and announced that it had reached 1-million accounts since it began accepting clients in July 2019.
The banking offering of insurer Discovery Group made the announcement at a briefing with financial advisers and brokers on Monday, during which it also disclosed several new products and benefits for clients.
Among them is the Discovery Account, a new digital bank account with no monthly fee and the new Vitality “pay as you gym” option, which currently gives all Vitality members access to more than 170 Virgin Active and Planet Fitness clubs across the country with payment on a per workout basis.
“At the moment, it’s for Vitality members only, but we’re looking at rolling it out beyond that in time,” Kallner said in an interview. “It’s the way things are moving. People don’t want to get locked into long-term contracts, particularly the millennial generation and younger.”
Clients are able to access the gym by scanning a QR code at the entrance to pay an access fee of between R75 and R100 a visit depending on the facility. The amount is deducted from their Discovery Bank transaction account, credit card or accumulated Discovery Miles.
“The bank has scaled quickly and built a uniquely powerful digital banking and technology capability,” Kallner said.
“Our first million accounts is an endorsement of our shared-value banking model and provides us with a strong foundation to continue to disrupt the market.”
Travel
Discovery Bank’s 1-million accounts are held by more than 450,000 clients who have just over R11bn in deposits and R4.5bn in credit advances.
That’s up from about 400,000 clients in early December 2021, when the bank said it was adding 600 new clients a day and aiming to break even in 2024, at which point it expects to have reached a total client base of between 600,000 and 700,000 customers.
Discovery Bank also announced new travel benefits for clients such as access to The Lounge, which is a strategic partnership between Discovery and SAA that provides clients with access to a preflight relaxation area at the OR Tambo, Cape Town and King Shaka airports. The new no-fee Discovery Account also gives clients access to the Vitality Travel booking platform, which was launched in March.
Kallner said the Discovery Account allows clients of the insurer to access their full product portfolio and various benefits and incentive programmes from the app, essentially making it the de facto operating system for the group. Clients are also able to deposit money into the account for retail purposes, though transactions or ATM withdrawals could incur fees.
“Discovery Bank’s digital payments technology, advanced security features and shared value rewards capabilities represent a unique opportunity to deliver new products and digital services to all of our clients,” said Kallner.
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