Financial Group Profit Plans Major Entry Into Provident Fund Market
Financial group Profit plans to enter Israel's provident fund market, seeking a license to manage long-term savings while leveraging its massive distribution network.
The financial group Profit is preparing to enter the provident fund market, marking an unprecedented move where a major insurance distribution agency seeks to manage long-term savings directly. Controlled by Asaf Banai and Shlomi Alberg, the group manages 130 billion shekels in client assets and intends to apply to the Capital Market Authority for a dedicated operating license through a subsidiary.
Profit has already begun interviewing senior executives from major insurance companies to lead the new venture. The move is expected to trigger significant regulatory scrutiny, as Profit will simultaneously distribute rival products and compete with traditional insurance giants and investment houses. Industry estimates place the setup cost at roughly 50 million shekels, though Profit's formidable distribution network and existing executive talent could reduce expenses.
The long-term savings market currently concentrates around 3 trillion shekels under a handful of institutional players. Profit executives believe their independent network of hundreds of financial planners will provide the necessary leverage to succeed, supported by recent strategic investments from Leumi Partners and Shastovitch at a valuation of 670 million shekels.
