Discovery Bank is testing its capabilities with live testing of system infrastructure, operating processes, and regulatory engagement.
This is according to the company’s interim results for the six months ended 31 December 2017.
Discovery has spent R1.2 billion on Discovery Bank, and this is expected to reach R1.5 billion by launch.
Discovery CEO Adrian Gore previously said South African banks are worried about Discovery’s entrance into the market, as it will be disruptive.
“The value proposition itself will be good for customers. I mean, that is what we do,” said Gore.
He said using incentives to change behaviour works well, and they can add value with their model of sharing value and creating behaviour change.
Discovery Bank will target the “mass affluent market”, which Gore said covers “a low LSM right the way to the top”.
The company confirmed that it has received its banking licence, along with:
- National Credit Act approval, for the advancement of credit to the public.
- South African Multiple Options Settlement, which allows transactions with other banks in South Africa to be settled.
- SWIFT approval, which allows it to transact on the SAMOS systems with the SARB.
- Payments System of South Africa approval, letting it conform to the rules necessary to process specified payments.
- Visa Principal Issuer licence, with Discovery Bank receiving unique six-digit BIN-numbers for both credit and debit cards.
- Restricted Authorised Dealer in Foreign Exchange approval, granted by the Financial Surveillance Department.
Discovery will launch its banking offering to the public during 2018.