Discovery says it is live-testing its banking capabilities, testing “system infrastructure, operating processes and regulatory engagement”.
The insurer will launch its proposed banking offering to the public during 2018. Spend to date is R1.2 billion and this is expected to reach R1.5 billion by launch, it said in a statement on Tuesday.
On 16 October 2017, Discovery Bank was granted a banking licence from the Registrar of Banks.
Discovery CEO, Adrian Gore first announced plans for a retail bank in 2015, and stated that it would act as a direct competitor to Absa, FNB, Nedbank, Capitec, and Standard Bank.
The insurer has reportedly seen great success with its Discovery Card joint venture with FNB, which would provide a launch pad for full banking services.
“We’ve got the capital, we’ve hired bankers, we’re building substantial systems. We want to make an offering that’s relevant and can win market share,” Gore has previously said.
On Tuesday, Discovery published its interim financial results for the six months ended December 2017, with normalised profit from operations up 19% to R4.059 billion, while insurance premium revenue climbed to R17.76 billion, from R16.65 billion before.
Diluted normalised headline earnings per share advanced 29% to 438.3 cents per share versus 338.6 cents previously.
Core new business annualised premium income (API) was up 16% to R9.303 billion.
Discovery said of its new banking venture: “Over the six-month period, management worked alongside regulators and industry associations to obtain the required licences and perform associated testing.”
It said that in addition to its banking licence, Discovery Bank has received the following licences/memberships:
Re-disseminated by The Asian Banker from Businesstech.co