South African health insurance group Discovery has secured a licence from the Registrar of Banks to start retail banking operations in the country.
The licence approval is, however, subject to conditions regarding the proposed shareholding in the new bank and approval from regulators including that of the Competition Commission.
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“Discovery awaits the Competition Commission’s final response and is in the process of assessing the implications of the conditions. Shareholders will be informed of further developments and progress in the development of Discovery Bank Limited when appropriate,” the company said in a statement.
According to Discovery CEO Adrian Gore, the company is on track to launch retail banking operations by the middle of 2018.
The insurer unveiled plans to launch a full-service retail bank in September 2015.
At the time, the firm said that would use ZAR1.3bn ($97.4m) to raise its stake in its credit card arm and a joint venture with the FirstRand Group – DiscoveryCard – to about 75% as a first step.
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By GlobalDataIn October 2016, the firm obtained approval from the Registrar of Banks in South Africa to launch a retail bank.
