<\/p>\n
Discovery is confident its new \u2018super bank\u2019 strategy, the next step of which is to be unveiled in October, will help propel the group and its South African businesses \u2013 including Health, Life, Invest and Insure \u2013 towards profit growth of between 15% and 20% a year over the next three years.<\/p>\n
In this last year, it achieved a 17% increase in normalised profit \u2013 nearly precisely in the middle of its range.<\/p>\n
Read\/watch:<\/p>\n
Discovery earnings jump 21% as bank turns profitable<\/p>\n
CEO Adrian Gore says the percentage of people joining the bank who are not existing Discovery customers is up to 70% (it had been around two-thirds).<\/p>\n
This means \u201cthere\u2019s millions of members in the Discovery base that aren\u2019t members of the bank\u201d.<\/p>\n
Currently, this amounts to 1 000 people a day, which is an astonishing number.<\/p>\n
With the super bank, the plan is to bring this all together in a powerful refreshed app, rolling out in October, which will bring those other \u2018composites\u2019 into a single interface.<\/p>\n
It sees this as being an \u201cintegrative control layer for a customer\u2019s entire economic life \u2013 orchestrating their financial, health, and lifestyle ecosystems, and converting verified behaviour change into a single currency of real value\u201d.<\/p>\n
There\u2019s a lot to read there.<\/p>\n
Read:<\/p>\n
Discovery\u2019s bank bet starts paying off, handsomely
\nAdrian Gore: Building a bank is harder than you think<\/p>\n
Basically, the Discovery Bank app is going to become the primary app for anyone with a Discovery product. Gore says this trend overall is \u201cforming into a very, very powerful composite maker\u201d.<\/p>\n
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CONTINUE READING BELOW<\/p>\n
Therefore, it could surface \u2013\u00a0or sell \u2013 any of its other offerings, including Health, Life, Invest and Insure to a customer. The key here is that there is such little overlap between these pools of customers.<\/p>\n
Source: Discovery<\/p>\n
A model rivals may not match<\/p>\n
He believes Discovery\u2019s \u2018super bank\u2019 strategy would be \u201cin and of itself\u201d hard to replicate by any of the other banks. Core to this is the group\u2019s shared-value model, and while not impossible, he doesn\u2019t think any of Discovery\u2019s competitors would do it.<\/p>\n
\u201cI think we stand for something others don\u2019t really stand for.\u201d<\/p>\n
What is interesting is that Discovery is already able to attach another product in its house at a far faster rate to Bank customers than to its broader base.<\/p>\n
In other words, a Health or Insure customer might take up a second product in more than two years, versus just over six months for a banked customer. This rate of adoption increases over time, according to Discovery\u2019s experience.<\/p>\n
How the \u2018super bank\u2019 will evolve<\/p>\n
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CONTINUE READING BELOW<\/p>\n
Gore says the \u2018super bank\u2019 strategy represents an \u201cadvancement on three fronts\u201d.<\/p>\n
\u201cOne is kind of management functionality, as the bank grows its functionality and the ecosystems grow. You get kind of this ability to access ecosystems from health to fitness to travel to fuel to food, et cetera, and that\u2019s what you will see.<\/p>\n
Read:<\/p>\n
Why all banks are chasing affluent customers
\nHow Discovery is using its bank data to better price insurance<\/p>\n
\u201cThe second is kind of the bank is forming the rails of the group to an extent when you analyse the power of the bank, security, anti-fraud payment systems is actually the tool for all the products.<\/p>\n
\u201cAgain, going forward over time, whatever product you buy from Discovery, whether you\u2019re a bank, whether you\u2019re a bank account holder or not, you\u2019ll be using the rails of the bank and that gives us the ability to offer you dramatically more value.\u201d<\/p>\n
Listen to Jimmy Moyaha speaking to Discovery founder and CEO Adrian Gore on the group\u2019s full-year earnings in this SAfm Market Update with Moneyweb podcast:<\/p>\n<\/p>\n
You can also listen to this podcast on iono.fm here.<\/p>\n
#Super #bank #drive #Discoverys #phase #growth<\/p>\n","protected":false},"excerpt":{"rendered":"
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