Discovery Bank offers one of the best risk-adjusted savings interest rates in the world among countries that are considered to have the lowest banking risk.<\/p>\n
With unrivalled rewards and an intuitive digital banking experience, Discovery Bank has taken on more than 300 000 clients and has seen growth to over 500 000 accounts with over R6.5 billion in deposits, therefore, becoming the fastest growing bank in South Africa, and among the leaders globally.<\/p>\n
\u201cFrom the outset, we designed Discovery Bank differently \u2013 as a shared-value bank,\u201d says Firoze Bhorat, Chief Marketing Officer of Discovery.<\/p>\n
\u201cShared-value banking means that our success as a Bank is tied to our clients\u2019 financial wellbeing. When clients manage their key financial behaviours well, like saving and not spending more than they earn, they become more financially successful and secure. This in turn means that we can operate our business more efficiently through the lowered financial risk that also allows us to share more value with clients through a range of enhanced rewards and interest rate benefits that further support their financial success. By helping clients achieve financial success, we help create a better, stronger society together.\u201d<\/p>\n
Discovery Bank leverages the Vitality Money programme to encourage good financial behaviours in banking.<\/p>\n
Clients get rewards for managing their money well as measured through five controllable behaviours: to spend less than household earnings, save regularly, pay off property, invest for the long term, and to have essential insurance in place.<\/p>\n
Discovery Bank measures financial health based on these five behaviours and awards a single Vitality Money status \u2013 Blue, Bronze, Silver, Gold or Diamond.<\/p>\n
This programme gives Discovery Bank a powerful tool to segment clients based on their behaviour<\/strong><\/a> so as to reward them with lower interest rates on borrowings when they manage their money well. Likewise, clients who manage their money well typically save for longer, therefore they also benefit from higher interest rates on savings.<\/p>\n \u201cWe estimate that if 5% of the balances in demand savings accounts in South Africa were to move to Discovery Bank, it would earn clients an additional R1 billion in interest a year,\u201d Bhorat said.<\/p>\n Interestingly, a client on Diamond Vitality Money status with a 24-hour notice account earns more than double the interest compared with the average interest offered on demand savings accounts in South Africa, and at a higher rate than any other country with a low banking risk.<\/p>\nClients with a higher Vitality Money status are displaying strong signs of financial resilience<\/h3>\n