Bank Zero ready to take on Discovery Bank and TymeBank

Jamie McKane

MyBroadband Journalist
Super Moderator
Joined
Mar 2, 2016
Messages
4,036
#1
Bank Zero ready to take on Discovery Bank and TymeBank

Bank Zero is confident that its increased functionality, competitive fee structure, and easy-to-understand offering will be enough to compete in an increasingly crowded market.

This is according to Lezanne Human, cofounder and executive director at Bank Zero, who said their innovative banking offer will include low costs and high interest for savings.
 

Zukat

Senior Member
Joined
Oct 11, 2010
Messages
738
#3
There is a big hype around these digital banks bringing in the revolution, but if we look overseas, for example Russia, with 50+ banks and over 75% internet users (way above South Africa). Guess how many digital banks they have? Only one. What gives?

Anytime, anywhere – as long as you have data on your smartphone you can do all your banking.
My current bank is offering this for free, not so digital of them if smartphone is actually the only way to access the bank.
 

ToxicBunny

Honorary Master
Joined
Apr 8, 2006
Messages
80,545
#4
Bank Zero, you can be as ready as you want... until you actually launch an official product to market you're getting nowhere.

The longer you wait, the less chance you have of succeeding since Tyme have launched and it looks like Discovery will also beat you to the punch.
 

MightyQuin

Honorary Master
Joined
Oct 6, 2010
Messages
13,106
#7
Well, I've Discovered that I have Zero Tyme for these wannabe, dreamland, cloud in the sky banks.

I'll stick to a real bank that provides ALL the services I want for myself and my company.
 

ekske1

Executive Member
Joined
Apr 22, 2017
Messages
5,073
#9
Bank Zero ready to take on Discovery Bank and TymeBank

Bank Zero is confident that its increased functionality, competitive fee structure, and easy-to-understand offering will be enough to compete in an increasingly crowded market.

This is according to Lezanne Human, cofounder and executive director at Bank Zero, who said their innovative banking offer will include low costs and high interest for savings.
Only if Bank Zero gives 20% black only shares, then it could really win with the black middle class :laugh:
 

ekske1

Executive Member
Joined
Apr 22, 2017
Messages
5,073
#10
Bank Zero Mutual Bank – which is more than 45% black-owned and 20% women-owned – was granted
their licence, has integrated with the national payments systems of the South African Reserve Bank,
and is currently Alpha testing their App-driven bank
Oh wait its even a safe-places-friendly bank.
 

krycor

Honorary Master
Joined
Aug 4, 2005
Messages
14,596
#11
Discovery = online banking with behavior change via Vitality (ebucks like with add on services sales coming in year two no doubt).

Tyme online banking..

Zero mobile banking..

No offense but I fail to see the innovation. Online banking, rewards, lower cost = not innovative.

If they want to do something innovative, do a banking API that developers can sell apps that influence realtime, back office or other types of transactions. The Stb one was getting there.. but to me that’s what cool.. imagine banking as a service cheap and you bolt on a 2FA from Joe Soap that does it the way you want (obviously bank validated and why the bank charges a platform fee ;). Or buy Joe Bloggs fancy but comprehensive budgeting app that does what 22Seven does but in your banking app. Or buy Joe Doe (lots of Joe’s in banking dev) app to do realtime online payment validation (reject all online payments but those ones you allowed) etc obviously bank will need to check meets banking service agreements and costs associated with action recovered accordingly but yea.. that would be innovative and get people into developing features for the bank haha
 

Sphinx21

Active Member
Joined
Jul 13, 2018
Messages
90
#12
They're going to have to up the ante. Discovery is bringing the A game (as spotted on their website today):

"Discovery Bank is also partnering with iStore to offer iPhones to their clients: by achieving your Vitality Active Rewards money goals, you can fully fund a new iPhone (or, at least, fund it in part, depending how many monthly targets you hit). "
 

backstreetboy

Honorary Master
Joined
Jun 15, 2011
Messages
13,020
#14
They're going to have to up the ante. Discovery is bringing the A game (as spotted on their website today):

"Discovery Bank is also partnering with iStore to offer iPhones to their clients: by achieving your Vitality Active Rewards money goals, you can fully fund a new iPhone (or, at least, fund it in part, depending how many monthly targets you hit). "
Nothing is free. If you miss your targets they'll hit you like a rash.
 

Sphinx21

Active Member
Joined
Jul 13, 2018
Messages
90
#16
Nothing is free. If you miss your targets they'll hit you like a rash.
So meet your targets. I'm onto my second free apple watch, free shoes, free flights; and coincidentally it's got me off my butt to go for a run a couple of times when I wasn't really in the mood. I may be taking the medicine just to get the lollipop that follows, but that doesn't mean I didn't benefit from the medicine.

Many will already have been engaging in responsible banking behaviours without their banks giving them anything, but charging a bunch of fees to maintain their bloated systems.
 

konfab

Honorary Master
Joined
Jun 23, 2008
Messages
20,000
#17
Many will already have been engaging in responsible banking behaviours without their banks giving them anything, but charging a bunch of fees to maintain their bloated systems.
wut?

All banks since the dawn of the concept reward people who save money with interest. All Discovery is doing is spending that interest for you with their reward partners.
 

Sphinx21

Active Member
Joined
Jul 13, 2018
Messages
90
#18
wut?

All banks since the dawn of the concept reward people who save money with interest. All Discovery is doing is spending that interest for you with their reward partners.
In fact many South African banks don't give you interest on a positive balance like your Capitec does. They lend out those current account deposits anyway and earn interest on them. You need to transfer to special savings accounts and other shenanigans.

All Discovery is doing is spending that interest for you with their reward partners.
That's preposterous. Discovery cannot spend your earned interest. If discovery gives you interest on your savings and a smoothie for engaging in saving, then why the hell not? I don't understand the utter contempt towards a simple gamification process that has been recognised and emulated worldwide.

If their gamification of banking behaviours results in a healthier book with fewer defaults and less bad debt, it translates into more profit for them and they can pass that on to customers in the form of better rates or rewards that encourage the right behaviours.

Similarly (but for different reasons) Investec can offer its customers below prime credit facilities - fewer of them default (in this case because they're rich). Capitec has priced in the risk of serving up credit to the general public and you pay that price for any credit product you use.

My sense from this exchange is that these decisions are overwhelmingly driven by emotion rather than calculation (this is why so many banks can still sell worse products than their competitors - only in SA would fixed deposit rates differ by several percentage points from bank to bank for example). When the pricing is up, the rates are published and reward conditions are clear, I'll assess and make a choice to join Discovery bank or not. This is as it should be.
 

joecool

Active Member
Joined
Feb 27, 2007
Messages
45
#19
I'm surprised that Tyme is not making more of the fact that you can open an account --- WITHOUT an ID, proof of address and your granny's knickers -- in just 5 minutes? And the Tyme terminal (found inside most PnPs) prints an actual Visa card right there! Why is it that everyone else wants a copy of my ID, proof of address, and the aforementioned granny's knickers?
 
Top