South African insurance group Discovery has secured the go-ahead from the Registrar of Banks in South Africa to launch a retail bank.
The insurer will now have a year to fulfill several conditions before obtaining a full licence from the regulator.
The group announced plans to set up a retail bank in September 2015 that would cater to both retail customers and small businesses.
It said at the time that it would use ZAR1.3bn ($94.2m) to increase its stake in its credit card business DiscoveryCard to about 75% as a first step. DiscoveryCard, a joint venture with the FirstRand Group, has a customer base of over 250,000.
Discovery was set up as a private health insurer in 1992, following which it has expanded into investments, credit cards, life insurance and property and casualty cover.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData