Sources inform “Globes” that Harel Insurance Investments (TASE: HARL) is expected to compete against the banks. It is considering issuing credit cards as part of its consumer credit strategy.
Harel deputy general manager Yaron Inbar, who is responsible for credit card activities, said, "We're considering either working with Israel Credit Cards-Cal (ICC-Cal), in which we own a 5% stake, or issuing a separate brand credit card."
Inbar added, "We have a fantastic in-house asset that we can leverage - a base of loyal customers. We got a tail wind when the Bank of Israel restricted household overdrafts. We'll build a scoring system (customer quality rating - E.P.) and offer a cheaper product to customers by exploiting our advantages - availability and sales power. Although a bank has branches, we have agents, which are an asset."
At the "Globes" Finance Conference several weeks ago, Harel Insurance chairman and controlling shareholder Yair Hamburger declared that the company planned to enter into the consumer credit sector. Israel Phoenix Assurance (TASE: PHOE1;PHOE5), Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), Migdal Insurance (TASE: MGDL) and other insurance companies have no such plans, preferring to mainly provide business credit.
Published by Globes [online], Israel business news - www.globes.co.il - on May 9, 2005