Discovery Bank has partnered with Easy Equities to allow it's clients to buy and sell both local and international shares.
This partnership was inevitable.
Because they are both purpose-led organisations!
Two Purposeful Organisations
Discovery and Easy Equities are two of the most purposeful organisations in South Africa.
Whereas most financial institutions set goals based around profit and shareholder returns, Discovery and Easy Equities built businesses focused on solving real societal problems.
For Discovery this has meant a 20 year journey developing products and services that help people live longer and healthier lives. Discovery Bank, which was launched in 2019, has extended this purpose by attempting to help customers improve their financial wellbeing.
Easy Equities on the other hand started off with the primary aim of making access to equity investments, cheaper and easier for all.
As I've written previously, there are strong arguments for why purposeful organisations win in the medium to longer term, and it shouldn't therefore be a surprise that both Discovery and Purple Group (Easy Equities parent company) have outperformed their competition across virtually all measures.
And one reason that purposeful organisations outperform is that they are naturally more inclined to partner with other organisations to achieve their vision.
Partnerships Are Key
Easy Equities for example is no stranger to partnerships. They already offer their services to Capitec, another purpose-driven institution, that has since inception focused on developing simple, affordable and accessible banking products.
And Discovery has a track record of partnering with organisations across the world, particularly with its Vitality offering, with companies like PingAn, AIA and John Hancock.
So it was perhaps inevitable that Hylton Kallner (Discovery Banks CEO) and Charles Savage, would end up collaborating.
Whereas organisations that attempt to be the biggest or the best, typically focus on building or buying solutions, purpose-led teams, I believe are more open to collaborate to achieve their missions.
And so it was in this case.
Discovery Bank certainly could have attempted to build their own equity offering, but if your goal is to improve peoples financial lives, and you find a solution being offered from a company with similar altruistic goals, why wouldn't you take it?
Why haven't we seen companies like Easy Equities partner with South Africa's other big banks and insurers?
Well if you were a purpose-driven CEO, would you work with institutions that are intrinsically inwardly focused towards generating profits for their dividend hungry institutional investors?
I'll let you draw your own conclusions!
Want To learn More About Discovery Bank And Easy Equities Business Models?
If you want to learn more about Discovery Bank and Easy Equities respective business models and why they are so incredibly successful, then I'd recommend you listen or watch the interviews I've held with Hylton Kallner and Charles Savage, as part of the Huawei Future Of Finance Series.
Behavioural Banking With Hylton Kallner
Democratising Investing With Charles Savage
I just wanted to say thank you for taking the time to read this post. I'm hugely appreciative as I realise that doing so takes the one thing from you I can't give you back.
I really hope you enjoyed it and whatever your views, I'd love to hear them.