esh bank: there will still be customers, there is already a large investor - voila! Of money

2023-01-08T06:54:35.946Z

Two weeks after receiving an operating license from the Bank of Israel, Clal Insurance and Finance is expected to invest NIS 100 million and join as a shareholder in the digital bank esh

Prof. Shmuel Hauser, Chairman of the Board of Directors of esh Bank (photo: Public Relations)

It will take many more months before this digital bank can start adding customers, but with the recruitment of investors - it has no problem: about two weeks after the announcement of receiving the Bank of Israel license, esh receives reinforcement from the institutional side: Clal Insurance and Finance will become the owner of about 5% of the shares

Prof. Shmuel Hauser, chairman of the esh bank board of directors, said: "Clal Insurance and Finance's decision, as a leading institutional body, to join us on the journey, is an expression of the confidence of the institutional market in the esh group and its vision."

Further to receiving the license from the Bank of Israel on 12.25 to establish management and control of the new bank esh, the group's recipient of the institutional trust, when Clal Insurance and Finance, one of the largest insurance companies in Israel, is expected to invest NIS 100 million in the esh group and thus become the owner of 4.99% of the shares in each of the two group companies - the bank and the technology company. The completion of the transaction will reflect an aggregate value of 1.8 A billion shekels.

Barak Bansky, senior vice president, manager of peer investments department, Clal Insurance and Finance (photo: PR)

"A different bank in the Israeli landscape"

This transaction comes about two weeks after the Governor of the Bank of Israel Prof. Amir Yaron and the Supervisor of Banks Yair Avidan granted Yuval Aloni, Nir Tzuk, Alex Lieberant and Alon Shein, the license to establish, manage and control a new bank in Israel named - esh, which will be headed by Prof. Shmuel Hauser (U esh,

based on technology that according to its founders is unique, will offer current accounts and appeal to private, self-employed and corporate customers, as well as deposit products, loans, payments and credit cards.

According to their announcement, this is actually the first time in Israel that a bank has been established with a completely new, highly efficient technology that contributes to a lean expense structure and enables new and attractive products for the benefit of the clientele.

The bank is headed by well-known banking and technology professionals.

As CEO of the bank will be Kobi Malkin (CEO of Otzar Hay'il Bank and former Mossad Bank).

Barak Bansky

, Senior Vice President, Manager of the Peer Investments Division in General Insurance and Finance, said: "We believe in the high-quality team with experience in growing companies in the world of technology, who joined a very high-quality group from the financial world.

We think that this is a different bank in the Israeli landscape, that will create value for its customers and that the investment will generate for Clal Insurance and Finance colleagues, a return in excess of the alternatives.

We will continue to look for quality partners to team up with, in order to continue generating an optimal return for our colleague."

Yuval Aloni, CEO of the esh group

, wrote: "We congratulate Clal Insurance and Finance, which is going to join the existing shareholders, who have so far invested over 100 million After the deal is completed, the total investment in the esh group will be over 200 million shekels. This investment will allow us to develop the product in accordance with the group's vision for our entry into the market."