Discovery granted banking licence

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File: Medical aid benefits can only be changed once a year.

 

JOHANNESBURG - Health insurance group Discovery has been granted a banking licence.

The move will enable to company to pursue its plans to set up a retail bank.

Discovery in 2016 said it would spend around R2.1-billion to establish the institution.

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The new financial institution will use the behavioural model that Discovery uses in life and health insurance to reward members for their choices.

The granting of the banking licence is subject to specific regulatory conditions and needs approval from South Africa's Competition Commission.