Discount Bank and Shufersal are brochures for establishing a non-bank financial venture

Surprising cooperation in the finance industry: Discount Bank and Shufersal are brochures for establishing a non-bank financial venture that will compete with traditional banking, and will allow fintech companies to offer their products. Both entities reported the transaction to the stock exchange this morning.
The venture will be based on the infrastructure of the Facebook payment app, which will be separated into an external and independent company in which Discount will hold 50.1% and Shufersal 49.9%.
The new venture will offer an advanced digital wallet that will compete head-on with Bank Hapoalim's beat, but a more significant line is the intention to allow fintech companies to offer customers a variety of financial products and advanced banking services, including loans, savings products and financial planning tools.
Discount and Shufersal intend to produce an open platform that will allow the sale of non-Discount banking services that will compete with traditional banking products, including Discount. The project's activities will be based, among other things, on the use of open banking infrastructure that will allow technology companies access to millions of customers.
The surprising move of the two bodies has been embroidered in recent months and was finally signed last night. Negotiations between the entities began against the background of the dramatic changes that the world of banking and payments and the flourishing of fintech companies are undergoing at the expense of traditional banking.
As part of the transaction, the company will allow Shufersal Club customers and Paybox customers to match the Shufersal Club credit cards to the Facebook application, issue virtual non-bank credit cards, enjoy cash-back accumulated in the wallet when purchasing at Shufersal and Be networks and purchase and redeem digital characters The "Golden Character" brand.
Uri Levin, CEO of the Discount Group, said: "Today we are launching a competitive and groundbreaking move in Israeli banking - non-bank banking, which is focused on customer needs. The project will offer advanced financial services from a variety of suppliers, will compete with all banks - including Discount Bank - and will bring significant value to the Israeli consumer. "
Yitzhak Aberkhan, CEO of Shufersal, said: "The two companies come with tremendous experience in their field and together we will be able to offer the Israeli consumer the most innovative, high-quality and convenient product, which will coordinate the current financial activities of the Israeli consumer."