News / South Africa

Citizen Reporter
2 minute read
15 Nov 2018
3:51 pm

White customers to boycott Discovery Bank for it’s ‘racist’ share scheme

Citizen Reporter

Discovery Bank's potential white customers are incensed by their exclusion from the bank's planned share scheme for black depositors.

Discovery's headquarters in Sandton. Picture: Charles Cilliers

Adrian Gore’s impending venture into the banking sector has come under fire after revealing that there are plans for Discovery Bank to give black clients 10% equity as part of an empowerment scheme.

Gore said during a press briefing where the plans for the bank were outlined: “The intention is that when black depositors join the bank, they will be given an equity. There will be no requirement for them to purchase shares at all.”

Gore stated that he expected some political backlash from the decision but stated that the plan was still at an initial stage and the bank would consult widely in order to refine it.

Discovery Bank will be modelled on behavioural economics and a similar rewards model to the company’s Vitality programme.

According to Gore, Discovery Bank aims to be the first bank in South Africa that addresses behaviours leading to poor financial outcomes.

Various Twitter users took to the timeline to lament over the share scheme with some even vowing to boycott the bank.

Speaking to My Broadband head of reputation management at Discovery Felicity Hudson said their vision was to build a uniquely South African bank that built a financially stronger country.

“A key part of this vision for a modern, sustainable South African bank is a shareholding that supports and meets the long-term transformation goals of the financial services industry,” explained Hudson.

She went on the add that this would be done in a way that was “broad-based and that recognises its first black clients and enables them to share in the growth of the bank. As a new bank, it’s also important to achieve scale – the BEE scheme is a part of the overall customer growth strategy and it will benefit all clients”.

ALSO READ: Bicycles will power the ATMs – Tweeps react to Discovery Bank

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