Discovery Bank Boast High Number of Signups Despite Lockdown
At the end of November 2020, Discovery Bank passed the 500 000 bank account threshold after being in business independently for only 14 months.
November 2020 Stats
In November 2020 alone the bank reported opening over 15 000 new accounts and importantly took in R700 million in new deposits. This adds nicely to the large number of existing accounts and deposits on hand.
the bank reported opening over 15 000 new accounts and importantly took in R700 million in new deposits
The bank had originally been targeting taking on 1000 new clients a day but things have naturally slowed down over time and during the lockdown. Still, these are impressive numbers, indeed.
Read More: Tyme Bank Have Over 2 Million Clients
At present, Discovery Bank says they now have over R5 billion in retail deposits in total and R15 billion in cumulative spend.
‘they have over R5 billion in retail deposits’
Discovery Bank clients have accessed over R3.7 billion in credit and are performing better than many other banks in terms of not defaulting on their repayment arrangements. This is a key metric in regard to the success of a bank. If their clients are repaying them when times are tough (like during lockdown) then it is a good indication that they will be profitable due to making interest on their book. It also is a good indicator that their clients will continue to meet their obligations in the future.
When clients don’t pay their debts, a bank (or other credit providers) may, on paper, begin to earn more since they are due interest payments on existing debts from clients however they have to be nervous that the clients may never pay the debt or that they may eventually may have to litigate or sell off the debt. This is less profitable for banks. It is much better of clients pay regularly or make use of arrangements like debt review to repay regularly if in financial difficulty.