Discovery Bank is putting AI to work, launching a new platform that allows customers to get personalised financial advice.
AI investment has grown exponentially in recent years, driven by the rapid adoption and popularity of OpenAI’s ChatGPT since it was launched in November 2022.
Technology companies have since sought to capitalise on the trend through AI-backed services or software platforms, while others benefiting from growing hardware demand to power such systems.
For banks, a big use for the technology has been around improving customer experience and service. While some operators are using AI to answer queries that would normally be done by call centre staff, others are developing tools to offer elements of financial planning and advice.
This is the page that Discovery Bank is using for its playbook.
On Thursday, the bank said clients will be able to access its “Discovery AI” through its WhatsApp channel. After being authenticated, clients can interact with Discovery AI through text, voice notes or images “to get tailored answers around their spending and savings patterns, understand their accounts better, and get suggestions to budget effectively and maximise product features and rewards.”
AI is reshaping the future of banking, enabling smarter, faster and more personal financial experiences.
— Discovery Bank
Discovery Bank is one of the country’s newest entrants, using a fully digital model with no physical branches.
Though the bank is still in its start-up phase, it offers retail banking solutions, including deposits and loans and advances, to clients in the SA market.
“AI is reshaping the future of banking, enabling smarter, faster and more personal financial experiences. It offers banks the ability to move beyond one-size-fits-all services and deliver tailored support that empowers clients, improves accessibility and brings private banking insights and service to everyone,” said the bank.
“AI is unlocking new ways to connect with clients: from predictive insights and seamless digital support to hyper-personalised financial tools once reserved for high-net-worth individuals.”
The bank also said Vitality Money, its behavioural change programme, now incorporates rewards for financial planning to align clients’ short-term goals and long-term goals, including estate planning.
In addition, the bank has beefed up security features on its platform, including new card and device management functionality, fraud monitoring and persistent warnings, digital account vault or “digital safe,” and access to emergency services through Discovery 911.
“We see a future where banks connect seamlessly with every aspect of a client’s life — their health, finances, lifestyle, and aspirations. In this product release, we’re enhancing our offering in five key areas to achieve this vision: financial wellness, account management and control, security, intelligence and personalisation, and shared value,” said Hylton Kallner, CEO of Discovery Bank.
Elsewhere in the sector, Capitec has been working on ways to incorporate more generative AI functionality into its customer service processes as a way to help agents resolve customer queries faster.
“The banking industry is evolving at an extraordinary pace. Digital disruption, changing consumer expectations, and the power of AI and data have completely redefined what financial services can offer. And yet, too often, banking remains transactional rather than truly empowering people,” Kallner said.
Earlier in the month, Kallner told Business Day that billions have been spent on the digital backbone of the banking operation, benefiting from the wider Discovery group.
While existing Discovery clients have been a big source of business for the banking operation, Kallner says two out of three clients registering accounts are from outside the ecosystem.
This comes a few week after parent company Discovery reported that the banking unit had swung to a R69m operating profit, excluding the cost of customer acquisitions, in the six months to end-December from a loss of R154m the same time a year earlier. Including these costs, the company narrowed losses by 57% to R145m. The group now aims to triple its profits to R3bn in the next five years.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.