The operational loss for the fiscal year of South African digital bank Discovery Bank was R990 million ($57.2M), down 10% from the previous fiscal year.
This became clear when Discovery revealed its financial results for the fiscal year ending June 30.
An impressive milestone for the digital-only bank, according to a statement released by Discovery: 470 220 customers, up from 331 000 in the previous period, and 1 023 790 accounts, up from 649 000 in June 2021.
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Discovery Bank, which was introduced in November 2018 and launched into beta testing in March 2019, claims that its new service would revolutionise the banking clients’ behaviour.
The bank reports a 30% increase in retail deposits to R10.6 billion, with lending up 14% to R4.3 billion.
More than 800 average daily new-to-bank sales were achieved (compared to 500 in June 2021). This is a considerable increase and shows that the bank is well on its way to attaining its medium-term goal of 1,000 sales per day and 1,000,000 clients by 2026.
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“The bank has also continued to attract high-quality clients, resulting in high levels of average non-interest revenue and a low credit loss ratio of 1.56%,” the report disclosed.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexpert