The Bank implements its strategic plan for the Discount Group for 2021-2025 aimed towards the realization of an ambitious vision to be the best financial institution for its customers, which creates maximum value for its shareholders over time. The strategic plan is made up of three central pillars – accelerated evolution of traditional banking, a revolution in banking business through groundbreaking innovation and the maximization of the Group’s value, all while continuing to establish the capital, technological and human infrastructure that will enable future growth.
The financial basis and the capital infrastructure of the Bank are stable and are being strictly managed, thus enabling the Bank to withstand the complex challenges presented by the Corona (Covid-19) crisis, to act in a responsible manner with respect to its stakeholders and to invest efforts in building their resilience.
Discount Group Activity
Holdings include Mercantile Discount Bank (MDB), specializing, inter alia, in services and products forsmall-businesses, households and local authorities; the credit card company ICC (71.8% owned); Discount Capital, the Group’s non-financial investments arm, active in non-financial investments, investment banking, and underwriting; Tafnit Discount Asset Management and PayBox, in which the Bank owns 50.1% (see below). The Group operates abroad via IDB New York, the largest Israeli bank operating overseas with branches in the New York area, Florida and California, which focus is on the business-commercial sector and private banking.
Discount Bank is a public company traded on the TASE. All equity of the Bank is held by the public (having no core controlling interest). The Discount Group offers its customers comprehensive banking services through 173 branches1 in Israel.
The activity is conducted in five major operating segments
Households’ segment – This segment consists of the private customers of Discount Bank and of MDB. Available to them is a nationwide network of branches, a call center that also handles written inquiries, and leading digital channels. Also available to customers are professional consulting arrays, including: mortgage consulting, investment consulting at the investment centers and at the private banking centers and pension consulting at selected branches.
Small and Micro Businesses’ segment – Customers benefit from one-stop-shop services, whereby business and private solutions are provided by business-banking staff at the branches. Additionally, customers enjoy a designated website, SMS services, and a unique “business key” credit card that rewards home and business purchases. The customers have a range of attractive financing channels, small business funds to finance investment and growth, and a designated dealing room that provides a variety of tailored foreign-currency services.
Medium Businesses’ segment – The segment consists of companies having a medium sales turnover. It includes also customers of MDB and commercial banking customers of IDB New York. At Discount Bank, the service is provided at three business centers spread over five regions, through business teams which include: business bankers, economists, credit coordinators and a team engaged in providing loans and guarantees. These mixed teams provide a personal, professional and comprehensive service that includes tailoring the diverse banking products to the entirety of the customers’ financial needs, including credit solutions, currency and risk hedging, credit card clearing, financing, specialized investments, international trade and more. Additionally, the business centers offer solutions for the financial needs of the owners and managers of the companies, as well as designated arrangements for their employees.
Large Businesses’ segment – This segment consists of large business customers, financial institutions and institutional customers of Discount Bank and customers of the corporate banking segment of IDB New York. The financial support for the large corporations is provided through teams of business managers at the business segment of the corporate division. Each team serve as a SPOC for all the business customer’s financial needs, including the customizing of creative financial solutions and banking products in credit, currency hedging, international trade, credit card clearing, specialized investments in the capital market and more. Customers in the real-estate sector are serviced by the Real-Estate group, with financial assistance for construction projects included among the services provided. The Products Group provides solutions for complex investment transactions in national infrastructures. The segment also provides structuring of syndicate deals in conjunction with institutional investors and banking entities. Institutional customers and capital market participants obtain through the Capital Market Group, credit allocation services and related services – brokerage, investment consulting and securities lending. The Discount Tech Subdivision offers suitable products and services to Israeli high-tech customers from their seed stage through to their hyper growth stage. The subdivision offers a one-stop-shop through a team specializing in the high-tech sector.
Private Banking segment – This unique segment includes private banking customers of Discount Bank, Israelis and foreign residents owning financial wealth. The segment also includes the private banking customers of IDB New York. Service to Discount’s Israeli customers is provided at four designated private banking centers. Customers with high financial wealth are provided a comprehensive service by bankers and consultants who specialize in this segment. Consultation services are offered to customers of medium financial wealth by the Bank’s consultants in the investment segment, at four centers and at six extensions spread throughout Israel. An international private banking center also operates. Customers enjoy a personal service, available during especially long business hours.
Fintech and Innovation
The Bank adapts to its dynamic environment and actively creates innovative banking models for providing customers with advanced services tailored to their needs. In this framework, the Bank continues the development and promotion of collaboration with fintech companies and the integration thereof in value propositions to customers.
Strategic cooperation with Shufersal
In January 2021, the Bank signed a strategic cooperation agreement with Shufersal Ltd. to set up a digital wallet for customers of all the banks, based on the PayBox payments platform, within the framework of the PayBox company that is controlled by the Bank
Involvement and contribution to the community
Since its establishment the Bank acts in aid of the community, as part of its business, social and cultural commitment. The Bank focuses its activity upon social mobility – the support of the social and geographic peripheral areas in Israel through education, learning and encouragement of work in employment challenged segments. Numerous employees participate in their free time in different voluntary activities. “Sprint Discount” is the flagship project, which the Bank has been supporting for 16 years; within the framework of this project, the Bank collaborates with the “Sprint for the Future” Association. The Association initiates and runs unique and innovative programs to promote education and learning for personal development and socio-economic mobility, aimed at weaker populations from all segments of society, and takes active measures to integrate them in academic studies, in employment and in Israeli society. MDB also participates in the activity of the Association, contributing every year tens of scholarships for academic studies to students belonging to the Arab society. In addition, Discount Bank takes active part in different projects in the fields of culture and art, and also provides sponsorships.
1 Data as of September 30, 2021 – 99 branches of Discount Bank and 74 branches of MDB
* Photography Rami Zerniger ADVERTISING Adler Homsky
יחסי שליחות מתקיימים כאשר צד א’ – השולח, המייפה את כוחו של צד ב’ – השלוח, לפעול בשמו ובעבורו. כך לדוגמא, במקום בו אייל לא מעוניין כי ידעו כי הוא בעל מניות בחברה, הוא מבקש מדודי להחזיק את מניותיו בעבורו.
מוסד השליחות הוסדר בישראל במסגרת חוק השליחות, תשכ”ה-1965 (להלן: “החוק”) . החוק קובע בין היתר כי כל פעולה משפטית שאין הכרח מהותי או חובה על-פי דין לבצעה באופן אישי, כשרה לשמש כנושא לשליחות.
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