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Discovery Bank, the digital lender backed by South African businessman Adrian Gore’s Discovery Limited, is setting its sights on expanding into business banking, with particular focus on serving small and medium-sized enterprises.
The digital bank’s CEO, Hylton Kallner, made the plan public during the UBS South Africa Financial Services Conference in 2025, describing it as a “natural next step” for the fast-growing digital lender. Gore, Discovery’s founder and Group CEO, echoed this, calling the move part of the group’s broader ambition to deepen its reach across financial services.
Growth beyond retail
Business banking marks the fourth stage in Discovery Bank’s roadmap to reach R3 billion ($171.4 million) in annual profit by 2029. The first three focus areas — client growth, revenue expansion, and margin improvement — have already shown progress.
Kallner said the push into SME banking would build on Discovery’s existing ecosystem. The bank intends to tap into its relationships with thousands of employers covered under Discovery Health Medical Scheme and other group divisions. It will also leverage its extensive network of 12,000 financial advisers and 45,000 healthcare practices across the country.
“Many small business owners are already using their personal accounts for business purposes,” Kallner said. “That tells us there’s an opportunity to serve them better with products designed specifically for their needs.” He added that Discovery Bank would take a measured approach, similar to how it built its retail business — disciplined, data-driven, and innovation-led.
Competition and opportunity
The move puts Discovery Bank in direct competition with South Africa’s established lenders — Absa, Standard Bank, FNB, and Nedbank — as well as Capitec, which entered the SME space in 2023. Despite the crowded field, Kallner believes Discovery’s shared-value model and integrated platform give it a competitive edge.
Gore said the bank remains self-sustaining and does not currently require additional capital from the group. “It’s generating its own cash,” he said. “Only when we decide to scale significantly into business banking would more investment be needed — and that’s not immediate.”
Discovery’s broader growth picture
Discovery Bank forms part of Discovery Limited, the financial services group Gore co-founded with Barry Swartzberg in 1992 as a health insurer. Over three decades, the company has grown into one of South Africa’s most diversified financial institutions, offering products in health, life, and wellness under its Vitality brand.
For the year through June, Discovery Limited reported a 26.6 percent rise in annual profit to R9.56 billion ($545 million), up from R7.55 billion ($430 million) the previous year, driven by strong performance in its health, life, and Vitality businesses.
