This bank rewards you for positive financial habits. In the latest FF Virtual Arena, we’re joined by Discovery Bank CEO Hylton Kallner to discuss the bank’s rapid growth, innovative approach, and the future of digital banking in South Africa. Discovery Bank are seeing a startling rise to prominence through their shared-value model, which rewards customers for positive financial behaviour, and have been branchless from day one. Watch the interview to hear more about this fascinating approach and… Their latest customer milestone, two years ahead of schedule. Why they’re the World’s First Behavioural Bank. What their AI-powered co-pilot looks like. Ahead of Schedule Speaking to Ali Paterson, Hylton Kallner, CEO of Discovery Bank, was happy to talk about recently celebrating the milestone of reaching one million customers—an achievement realized two years ahead of schedule. They’ve been making waves in an emerging market and it’s impressive to see. South Africa’s banking system, Kallner explains, was already robust and well-regulated before Discovery Bank entered the market. Unlike some regions where fintechs emerged to address systemic failures, South Africa’s banking sector was stable and mature. However, their own research revealed a clear demand for digital banking, with nine out of ten South Africans expressing a preference for online solutions. Despite widespread branch infrastructure, the rise of smartphone penetration—even in rural areas—created a fertile ground for a fully digital banking experience. Discovery Bank seized this opportunity by launching a branchless, full-service digital bank, eliminating the traditional constraints of physical infrastructure. This approach not only appealed to customers looking for convenience but also enabled the bank to focus entirely on user-centered technology and design. Building a Bank from Scratch Like a lot of neobanks, one of Discovery Bank’s key advantages was its lack of legacy systems, which allowed it to build its technology stack from the ground up. Kallner described this as both a challenge and a luxury. The bank uses an SAP platform for industrial-strength back-end operations while designing bespoke front-end systems to create seamless customer experiences. Features like instant account opening with full compliance checks reflect this focus on simplicity and efficiency. In addition to its digital offerings, Discovery Bank introduced a hybrid service model that combines advanced technology with highly qualified human support, including private banking services. This dual approach provides the flexibility of digital banking alongside personalized assistance, setting it apart from many fintech challengers. The World’s First Behavioral Bank Discovery Bank’s most distinctive feature is its “behavioral banking” model, which rewards customers for healthy financial habits. The bank tracks five key metrics, such as spending less than you earn and maintaining sufficient retirement savings. Unlike traditional credit scoring, this approach is income-agnostic, recognizing that financial behavior, not income level, determines risk. By incentivizing positive behaviors, Discovery Bank aligns its goals with those of its customers. For example, clients who manage their finances responsibly benefit from better interest rates, discounts on travel, and Discovery Miles—a rewards currency that can be used for shopping or flights. This shared-value model, inspired by Discovery Group’s broader focus on wellness, fosters a mutually beneficial relationship between the bank and its customers. Gamification and Engagement Core to Discovery Bank’s strategy is gamification. Customers can set personalized goals related to spending, health, and even driving habits, earning rewards for meeting these objectives. Weekly challenges and a game-like reward system have led to high levels of engagement, with some customers maintaining streaks for nearly a decade. Kallner noted that this gamified app