As post-pandemic consumer focus shifts to achieving financial wellness, and as financial institutions look at ways to meaningfully infuse purpose into their organizations while maximizing opportunities, one South African bank may have created the perfect recipe for success. Identifying as the “world’s first behavioral bank,” Discovery Bank leverages foundational principles of behavioral economics to help people redefine their relationship with money. Further, this approach positions the bank as a partner in financial wellness rather than an institution making money off of levying fees.
The premise of Discovery Bank is manifest: By tracking people’s financial behavior and incentivizing them to make better decisions, both the individual and the economy can thrive together. The bank helps its customers by tracking their financial behavior and linking rewards – everything from food and airline miles to mobile phone financing and lower interest rates on loans – to financially responsible consumer behavior as they move toward their goals. As much an innovation company as a financial institution, Discovery Bank’s offering is ever-evolving, much like the customer they serve.
Consequently, the banks’ methods go much deeper than financial wellness and rewards apps. As the bank’s CEO outlines: this isn’t a one-off program. Rather, it’s a holistic, dynamic approach that exemplifies a purpose-driven model, with a goal having a far-reaching, positive societal impact. As outlined in Forbes, François Groepe, deputy CEO of Discovery Bank says, “It’s important to note that this is not (just) a rewards program… says. Our [approach] is linked to changing behavior so that you can contribute to a more prosperous society. I think that’s a very important differentiator.”
To learn more about how your bank or credit union can leverage the power of purpose-driven banking and market products and services within a more meaningful context that meets consumer needs, email info@adrenalinex.com.