Discovery Limited · JSE:DSY
Discovery — Investor Presentation (2019)
12 slides from Discovery's investor presentation, 2019
Slide 1: Discovery Bank Update
Discovery Bank Update
Slide 2: Global trends and shared-value Behavioural Bank
2 Global trends and shared-value Behavioural Bank Members Behavioral Improved Lower rates on borrowing, higher rates saving. Better economics banking efficiency financial management and greater wealth 5 3 80 Unable to deal with Catalyst for behaviour unplanned expenses 80% change of defaults now and
Slide 3: Early onboarding phase helped test 4 hypotheses
Early onboarding phase helped test 4 hypotheses The targeted client is characterised by the Could we develop a fully functional leading edge retail Discovery following attributes: LSM 8-10, with high savings bank that meets the unique needs of the Discovery Ecosystem and borrowings and levels of eng
Slide 4: Unique attributes of Discovery client base
Unique attributes of Discovery client base Demographic Behaviour Integration Engagement LSM breakdown of Discovery base Credit Loss Ratio Vitality Status distribution Average of 2.75 Discovery (1.5m clients) products for Discovery Card clients -50% >80% Market Default risk Discovery Card default ris
Slide 5: Could this complex system architecture be intuitive and simple to the user?
Could this complex system architecture be intuitive and simple to the user? >1,500,000 Core Banking system Integration with Manhours Discovery ecosystem Omni-channel Single view of the client >120 3rd Party interfaces Connected systems “Not more than 3 clicks for any task”
Slide 6: Smart Onboarding Principles
Smart Onboarding 5 Principles Full onboarding <5 minutes Digitally fulfilled FICA, AML and KYC Immediate transaction capability Instant balance transfer 94 interfaces >120 connected systems Next day card delivery 76 potential decisions 18 third parties 66 potential interactions 5 channels
Slide 7: Science behind Vitality Money
Science behind Vitality Money Data sources Behaviours Financial Ratios Points Vitality Money distribution Debt 𝑀𝑖𝑛𝑖𝑚𝑢𝑚 𝑑𝑒𝑏𝑡 𝑟𝑒𝑝𝑎𝑦𝑚𝑒𝑛𝑡𝑠 1/P(D) 1− Management 𝐼𝑛𝑐𝑜𝑚𝑒 >70% Points / Ratio 𝑇𝑦𝑝𝑒𝑠 𝑜𝑓 𝑐𝑜𝑣𝑒𝑟 above Blue Insurance 1/P(D) 𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑑 𝑡𝑦𝑝𝑒𝑠 𝑜𝑓…
Slide 8: Could Vitality Money create the correct segmentation and will clients engage?
Could Vitality Money create the correct segmentation and will clients engage? Correlation of physical activity and financial health Dynamic Interest Rates Savings rate 6% 7.5% Borrowing rate Prime Market -1% Dynamic Discounts 35% 75% 35% 50% 10% 75% 10% 50% 10% 50% ~0% 35% 100% 0% 15%
Slide 9: Vitality Money client examples and annual cash backs
Gold Suite Black Suite Black suite Vitality Money Vitality Money Vitality Money Vitality Money Sam is a 28 year old accountant who has recently Khaya is a 40 year old lawyer who has recently upgraded Kate is a 35 year old executive who has over joined Discovery bank his Discovery Card to a Discovery
Slide 10: Discovery Miles → e-money for the Discovery Ecosystem
Discovery Miles → e-money for the Discovery Ecosystem Discovery Miles as e-money Discovery Miles can be used within the Discovery Eco-system instead of cash Can readily convert Discovery Miles for cash Integration and Vitality Status for each program delivers cash back rewards paid in Discovery Mile
Slide 11: Conclusions from early client onboarding
Conclusions from early client onboarding The targeted client is characterised by the We have developed a full service Bank that has the Discovery following attributes: LSM 8-10, with high savings capacity to offer credit up-front to meet the needs of the Ecosystem and borrowings and levels of engage
Slide 12: Discovery Bank Update
Discovery Bank Update