Business
Discovery Bank Eyes R3 Billion Profit with AI and WhatsApp Services
From start-up to serious contender
Discovery Bank, once the newcomer in South Africa’s fiercely competitive banking sector, is now charting an ambitious path to profit. Just six years after its launch, the bank has broken even earlier than expected and reduced its annual loss to R68 million. By 2029, the company is setting its sights on a bold target: R3 billion in profit.
Chief executive Hylton Kallner says the strategy is simple yet relentless: innovation. In an interview, he described Discovery as the fastest-growing bank in South Africa today, attracting around 1,000 new customers every day. That growth has already lifted the client base to 1.2 million, with a long-term goal of reaching 2 million by 2029.
Lending as a growth engine
Part of Discovery’s playbook is expanding its lending. In the past year alone, loans grew by 39% as the bank introduced revolving credit facilities and built its personal and home-loan businesses. Kallner’s aim is to raise the loan-to-deposit ratio from 39% to as high as 70% in the next four years. He argues that with advances still less than half of deposits, Discovery has plenty of space to grow its loan book without overreaching.
For customers, this could mean greater access to credit products in a climate where many households are cautious about traditional banks. It also shows Discovery’s willingness to compete directly with larger incumbents on mainstream offerings rather than just niche services.
AI tools and WhatsApp banking
The next chapter in Discovery’s story is about technology. The bank has confirmed plans to roll out a new artificial-intelligence tool designed to enhance private-banking services, giving wealthier clients more tailored solutions. Just as significant is the plan to integrate banking functions into WhatsApp, making it easier for clients to access services on a platform they already use daily.
This push into AI and conversational banking could help Discovery maintain its growth pace. South Africa’s banking industry is highly digitised, and customers have become accustomed to mobile-first banking. By using platforms like WhatsApp, Discovery is betting on convenience to retain loyalty while broadening access.
The bigger picture
Discovery’s story reflects broader trends in South African finance. The country has one of the most advanced digital banking markets on the continent, yet competition is intense. Capitec, TymeBank, FNB, Standard Bank, and Nedbank all dominate the space with aggressive digital strategies. For Discovery to carve out a sustainable niche, continuous innovation is not optional but essential.
Public reaction online has been mixed. Some South Africans see Discovery as a forward-thinking disruptor that pushes rivals to modernise faster. Others remain wary of over-reliance on AI and messaging apps, raising concerns about data privacy and whether new tools will truly benefit ordinary clients.
Still, Discovery has already shown that it can exceed expectations by breaking even a year ahead of schedule. If its growth trajectory continues, the promise of R3 billion profit by 2029 may be less of a dream and more of a likely outcome.
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Source: Business Tech
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