"They want to be the Rami Levy of the pension savings market": Will Profit compete with those who pay it?
The Profit financial group, owned by Assaf Benai and Shlomi Elberg, is considering entering the management of provident funds and study funds, directly competing with the institutional bodies whose products it currently distributes. This move is expected to create a conflict of interest, as it will compete with its own clients. Profit plans to offer lower management fees through technological efficiency.
The Profit financial group, owned by Assaf Benai and Shlomi Elberg, is considering entering the management of provident funds and study funds, according to a report in Globes. The move aims to directly compete with the institutional bodies whose products are currently marketed by Profit's agents, while offering lower management fees. The article notes that this is a market managing over 3.3 trillion shekels, with annual management fee revenues of about 15 billion shekels, of which about 9 billion shekels remain with the institutions after payments to agents. Profit plans to use artificial intelligence to reduce costs, but the move is expected to create a conflict of interest with the bodies it currently distributes. The Capital Market Authority will have to decide whether to allow insurance agents to become investment managers. The article mentions that Profit previously attempted similar activity through the investment house Migdalor, which failed and was delisted from the stock exchange after causing heavy losses to investors.