South African health insurance group Discovery said it has been granted a banking licence, in a move that opens the way for it to pursue plans to set up a retail bank.
Discovery said last year that it would spend R2.1 billion ($158 million) to set up a retail bank based on the “behavioural model” it uses in life and health insurance to reward members for their choices.
Its shares rose 0.60% higher in early trade, in line with Johannesburg’s All-share index, which was 0.50% higher.
Discovery said the granting of the banking licence is subject to specific regulatory conditions and still needs approval from South Africa’s Competition Commission. ($1 = R13.29)