Health insurance group Discovery has been granted a banking license, in a move that opens the way for it to pursue plans to set up a retail bank.
Business Day's Hilary Joffe says the announcement could see unsatisfied banking clients joining their offering.
Joffe predicts that the banking venture will be innovative and joined to the existing Discovery Vitality card programme.
There is already a Discovery card in existence that is linked to the vitality programme. It's expected that the card will be part of the offering.— Hilary Joffe, Editor-at-Large at Business Day
I wouldn't be surprised if Discovery wanted to get people to transfer their banking over to them.— Hilary Joffe, Editor-at-Large at Business Day
She says Discovery will likely introduced a new banking model using financial technology.
The granting of the banking license is subject to specific regulatory conditions and still needs approval from the Competition Commission.
The Commission needs to first approve the licence because Discovery's Vitality card is currently in collaboration with FNB, Joffe explains.
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