Discovery, an insurer based in South Africa, has unveiled plans to launch a full-service retail bank in a bid to diversify.
As a first step towards this move, the insurer plans to use ZAR1.3bn ($95m) to raise its stake in its credit card business DiscoveryCard, a joint venture with the FirstRand Group, to nearly 75%.
In addition, the company will also spend ZAR800m ($58m) on working capital.
Discovery founder and CEO Adrian Gore said that the launch of the bank could take a number of years, with the company yet to apply for a banking license.
The new bank would focus on retail customers as well as small businesses, Gore added.