Adrian Gore, Discovery's CEO popped in to the Primedia studios to chat to host Anele Mdoda and the 947 Breakfast Club listeners about behavioural banking. Watch here or read about the highlights of his visit below.
Adrian explained that behavioural banking is actually very simple: "If people manage their money well, they create value which Discovery Bank can then share back with them in better interest rates and rewards. It is much like our Vitality model. If you manage your money well, we reward you with great benefits and value. These are substantial benefits, too."
Anele agreed that this is such an important concept for every South African who has trouble managing their money. "I think we are looking for someone to help us change our relationship with money," she says.
Adrian shared some of the learnings about how the Vitality physical activity model has taught Discovery about rewarding good behaviour: "From [studying] the Vitality model, we know how to guide behaviour in a healthy way, through nudges. We will focus on the five key areas where people mismanage their money and offers so much value for addressing these, that people do change behaviour."
The five key behaviours to improve are:
- Managing your debt buy spending less than you earn
- Investing for the future, or retirement
- Paying off your property
- Having insurance for life's surprises, and
- Saving regularly to create sufficient savings for emergencies.
"As a bank client, and a Vitality client, you get substantial Vitality points and rewards, including higher rates on savings. Up to 7.5%, for instance, on 'lazy balances' or positive balances which earn no interest or very little interest. And, pay as little as prime -1 on borrowings," he said.
In addition, there are boosts to existing Vitality benefits like HealthyFood, HealthyGear and HealthyCare. "As an example, you can get up to 75% off healthy food at Woolworths, flight savings, etc. So we are stacking up the rewards you are used to, as well as offering this amazing rewards currency, Discovery Miles, which you can spend on just about anything," said Adrian.
Listeners were encouraged to share how they were managing their money against the five behaviours, and Adrian recognised their efforts by giving away two dream holidays!