Discovery Bank is accelerating client acquisition in South Africa, as it deepens its footprint in an increasingly competitive retail banking market.
This emerged when parent company insurer Discovery yesterday published its operational update and trading statement for the six-month period ended 31 December.
Discovery reported that the digital bank’s profit rose by between R210 million and R230 million, compared with a loss of R145 million in the prior period.
It adds that Discovery Bank exceeded expectations, with client acquisition accelerating to an average of around 1 500 new customers per day by the end of the reporting period.
Discovery confirmed the 1 500 figure to ITWeb and says the bank now has about 1.4 million clients.
According to the insurer, all key performance indicators also showed strong results − including the credit loss ratio, growth in non-interest revenue and net interest income − highlighting the quality of its customer base and their strong engagement and loyalty.
Discovery Bank was launched in 2019 as South Africa’s first fully digital, wellness‑linked bank, part of the Discovery Limited ecosystem. It differentiates itself through its Vitality-linked banking model, rewarding customers for healthy financial behaviours, and by integrating banking with insurance, investments and lifestyle products.
In the digital banking space, competitors such as TymeBank, now known as GoTyme Bank, and Bank Zero have emerged as significant challengers.
GoTyme Bank, launched in 2019, focuses on low-cost banking and mass-market accessibility with a strong retail footprint via pick-up points in supermarkets.
The Patrice Motsepe-controlled bank recently revealed it is adding 6 500 new clients a day.
Bank Zero, founded in 2018, positions itself as a fully digital bank with an emphasis on zero-fee accounts and transactional transparency, targeting tech-savvy customers seeking cost-effective, efficient banking solutions.
Together, these banks are driving a new era of digital-first financial services in South Africa.
Over the reporting period, the Discovery Group made strategic investments in Vitality AI and launched a partnership with Google − initiatives expected to significantly boost global engagement in its Vitality programmes.
The insurer says these moves are designed to accelerate momentum across existing partnerships while unlocking additional value from new collaborations.
By leveraging AI-driven insights and Google’s global reach, Discovery aims to deepen user interaction, personalise wellness and financial solutions, and expand the international footprint of its Vitality ecosystem.
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