How has banking really changed over the past century? Sure, there is easy access to banking apps, electronic payments and some cash back when you spend money. But when you really think about it, it’s still a matter of a one-size-fits-all approach – regardless of how well you manage your money.
Creating a new category of banking, Discovery Bank is leading the way as a shared-value bank. We spoke to Firoze Bhorat, Chief Marketing Officer at Discovery, about the Bank’s new marketing campaign and what shared-value banking means for clients.
Interviewer: What does it mean when you say Discovery Bank is a shared-value bank?
FB: The manifestation of shared value-banking, a radical new approach to banking, is driven by Discovery Group’s long-standing global model of shared-value Insurance. From the outset, we designed Discovery Bank differently – it is built to share the value our clients create through managing their money well, back with them through unprecedented interest rates and rewards.
Interviewer: You talk about the value that clients create. How do they do this and what does it mean for Discovery Bank?
FB: Discovery Bank’s Vitality Money program measures how well our clients manage their finances. We draw on behavioural economics to support, guide and incentivise individuals to manage their money well by changing five key behaviours: spending less than they earn; saving regularly; having insurance against unexpected events; paying off property sooner and investing for the long term. These improved behaviours allow Discovery Bank to assess risk as something changing over time based on engagement in the AI-powered Vitality Money tool. The value our clients create is as a result of managing their money well, which lowers financial risk for the Bank like defaults on payments. The better our clients do, the higher their Vitality Money status and the greater the value they receive – all through their Discovery Bank shared-value stack of unprecedented incentives and rewards.
Interviewer: Can you explain this Discovery Bank shared-value stack?
FB: The Discovery Bank shared-value stack is something that we developed together with our latest marketing campaign. The campaign highlights how shared-value banking creates a completely new banking experience for a broad and diverse client base – offering a world-class banking platform with the latest technology. This forms the foundation of the Discovery Bank shared-value stack, a visual representation of Discovery Bank and the unique set of benefits and rewards our clients enjoy such as dynamic interest rates, exclusive and powerful Dynamic Spend Discounts, a truly unique way to travel and Discovery Miles, our rewards currency that’s more valuable than cash.
Interviewer: Tell us more about the current Discovery Bank marketing campaign
FB: Our new multi-media marketing campaign, developed with MetropolitanRepublic, aims to unpack shared-value banking and position Discovery Bank as a new category of banking. We launched our integrated marketing campaign a 75’ brand campaign on TV and our digital channels on 25 January. This campaign, with numerous connection points to audiences, aims to take shared-value banking to consumers in a visually enticing way while highlighting every aspect of how Discovery Bank shares continual value with clients in meaningful ways. Further shorter-form adverts will share more about our key Bank features such as Dynamic Interest Rates, Dynamic Discounts and Travel rewards – all aimed at driving understanding of shared-value banking and interest among our target audiences.
Interviewer: What are some of the outcomes you have seen as a shared-value bank?
FB: Discovery Bank’s shared-value approach and its operational model are already showing progress in transforming the banking landscape – giving clients control over the benefits or rates they qualify for, and guidance on how to change their banking risks to ensure greater financial support and benefits. Our clients on a higher Vitality Money status have lower default rates and they save more money. Last year, Discovery Bank shared value with clients in excess of 4 billion Discovery Miles and they spent 3.1 billion Discovery Miles at the various Discovery Bank partners. Additionally, clients were rewarded with over 1.6 billion Discovery Miles for healthy behaviour – a testament of the merit of shared-value banking. The ultimate outcome of a shared-value bank is that our clients experience greater financial wellbeing, it reduces the risk of defaults for Discovery Bank to make the business more sustainable, and it addresses large-scale challenges, such as increased savings, that benefit society at large. With Discovery Bank, people can know they are experiencing the future of banking, now.
To find out more about shared-value banking here DM