Bank Otsar Ha-Hayal Ltd. (Otsar Ha-Hayal) is a unique pillar of Israel's financial markets, with a philosophy of "serving the military and the community", demonstrating excellence in retail banking, SME finance, military-only services, and community finance. Founded in 1946 by the British Trusteeship to provide financial services to Jewish veterans who served in World War II, its headquarters is located at 84 Ha'chashmonaim Street, Tel Aviv, Tel Aviv, Israel. As a wholly owned subsidiary of First International Bank of Israel (Tel Aviv Stock Exchange: FIBI), Otsar Ha-Hayal serves approximately 500,000 customers and is a benchmark for small and medium-sized banks in Israel thanks to its deep heritage and innovative capabilities.

basic bank information

Otsar Ha-Hayal is a commercial bank, privately owned, founded in 1946 and headquartered in Tel Aviv, Israel. Originally established by the British Trusteeship Authority to provide banking services to Jewish war veterans, the Bank was later expanded to include members of the Israel Defense Forces and employees of the defense sector. In 1972, the bank was opened to the public, in 1977 it was acquired by Hapoalim Bank, and in 1996 it was transformed into a full-fledged commercial bank. In 2006, Hapoalim Bank sold its 66% stake to First International Bank (FIBI), and in 2018, FIBI acquired the remaining 22% for 339 million Israeli NIS (approximately $99.1 million), making Otsar Ha-Hayal its wholly owned subsidiary. Banks are strictly regulated by the Bank of Israel and are required to comply with the Israeli Banking Law and international financial standards to ensure transparency in operations and the safety of customer funds. Its deposits are protected by the Israel Deposit Insurance Program, with a maximum coverage of ISIS 1 million (approximately US$260,000) per depositor. The SWIFT code of the bank is FIRBILIT and the bank code is 14. Otsar Ha-Hayal has about 30 branches in Israel and a total of about 200 employees in 2024.

deposit and loan products

depositsOtsar

Ha-Hayal offers a wide range of deposit products to meet the savings needs of individual and corporate customers

• current deposits: including checking accounts and savings accounts, such as "Basic Savings Account", with a minimum account opening amount of ISS 100 and an APY of approximately 0.01%-0.1%, the latest interest rate needs to be confirmed through branch or online banking. The account supports flexible deposits and withdrawals, which is suitable for daily money management, and military and veterans can enjoy free monthly fees.

• Fixed Deposits: Support Israeli New Shekel, US Dollar, Euro and other currencies, deposit terms from 1 month to 5 years, the minimum deposit is 1000 Israeli New Shekel. In 2025, the fixed deposit rate will change depending on the maturity, such as 0.5% for 1 month, 1.0% for 3 months, 1.5% for 6 months, 2.0% for 12 months, and 3.0% for 2-5 years.

• Featured Products:

  • High Yield Savings Accounts: such as the "Veteran Saver Account", which offers up to 2.0% APR, requires a balance of more than 10,000 Israeli shekels, no monthly fees, and is designed for military members and veterans.

  • Large Certificates of Deposit (CD): Support flexible tenors, suitable for large amount of money customers, the interest rate needs to be queried through the branch or app, and the early withdrawal penalty is 90 to 180 days of interest.
    Customers can check the preferential interest rate through the "Otsar Ha-Hayal Mobile" app or online banking, deposit products can be opened and calculated instantly, and some accounts are offered free of transaction fees.

LoansOtsar

Ha-Hayal offers a comprehensive range of loan products with a focus on military and SME financing:

• Mortgages: Fixed- and variable-rate mortgages with a loan amount of up to 80% of the value of the property and a repayment period of up to 30 years. In 2025, the fixed interest rate will be as low as 4.0% (3-year, exclusive to military personnel), the floating interest rate will be based on the Bank of Israel's benchmark interest rate (about 4.5%), and cash rebates and green mortgage discounts (energy-efficient properties) will be provided, and the application will require a credit score of 700 or more and an annual income of more than 100,000 Israeli shekels.

• Car loans: support new and used car financing, the loan amount is up to 500,000 Israeli NSHEs, the term is up to 7 years, the annualized interest rate (APR) is about 3.5%-6%, and a credit score of 660 or more is required.

• Personal Line of Credit: The loan amount ranges from NIS 5,000 to NIS 250,000, with a term of 1 to 5 years, an annualized interest rate (APR) of about 5.99%-10%, and the application threshold is a monthly salary of more than NIS 10,000 and a good credit history.

• Flexible repayment options: Mortgages and personal loans offer no penalty for early repayment, monthly or bi-weekly payment plans, and a revolving line of credit for flexible debt management.
  All loans are subject to bank approval, and customers are required to provide credit history, proof of income and asset information, subject to the terms of the loan agreement. The bank's SME lending services (e.g. letter of credit, bill discounting) provide additional support to small businesses.

digital service experience

Otsar Ha-Hayal's mobile banking app "Otsar Ha-Hayal Mobile" is the core of its digital services, available for download on iOS 14.0 and above and Android 9.0 and above, with an App Store rating of about 4.6 and a Google Play rating of about 4.4, with users praising its quick launch (in less than 2 seconds), intuitive interface, and multi-language support (Hebrew, English). Core features include:

• Face recognition: support for biometric authentication (such as Face ID and Touch ID), combined with 256-bit end-to-end encryption to ensure transaction security.

• Real-time transfers: Support real-time transfers in Israeli NIS through the Bank of Israel real-time transfer system, with a daily limit of up to 500,000 Israeli NISLs, international remittances covering more than 100 countries, and cooperate with Western Union to provide low-rate transfers.

• Bill management: Support online bill payment, automatic deduction and e-statement, and classify transaction records in real time.

• Investment Tool Integration: Support stocks, funds, bonds, and derivatives inquiries through the investment platform, providing real-time market data and investment advisory services.
  The online banking platform "Otsar Ha-Hayal Online" supports multiple browsers and provides similar functions, allowing customers to open an account in 5 minutes through the app or official website. The app supports accessibility features such as dynamic font adjustment and VoiceOver compatibility for visually impaired and hearing-impaired customers. In 2023, about 50% of customers complete transactions through digital platforms, significantly improving the user experience.

technological innovationOtsar

Ha-Hayal actively explores in the field of fintech, relying on its information technology division to drive digital transformation:

• AI customer service: Introduce an AI-driven customer service system to analyze transaction behavior and detect fraud risks in real time, automate 80% of customer inquiries by 2023, and plan to launch a virtual assistant in 2025 to support 24/7 inquiries and personalized financial advice.

• Open Banking API Support: Follows Bank of Israel's Open Banking Framework, integrates with third-party service providers, provides account management and financial services interoperability, and supports 35 deposit, credit card, and loan servicing APIs by 2024.

• Mobile payment platform: Apple Pay, Google Pay, and Samsung Pay are supported, and the mobile check deposit function simplifies operations.

• Other innovations: Partnering with AWS to optimize the trading system in the cloud; Launched e-financial fraud prevention services, such as overseas IP interception and delayed transfers; In 2024, it will invest 100 million Israeli NIS to upgrade cloud technology and data analysis platform to improve operational efficiency.

Featured Services & DifferentiationOtsar

Ha-Hayal is known for its dedicated services for military and veterans and community financial support:

• Military & Veterans Services: Provides low-interest loans, no-monthly accounts, and exclusive financial advisory services to IDF members and veterans, with military customers accounting for 40% of the total customer base in 2023.

• SME support: Participate in the Israeli government's SME Financing Guarantee Program through SME loan and cash management services, with loan approval as fast as 10 seconds and an amount of up to 3 million Israeli NSHEs, and the SME loan balance will increase by 12% in 2023.

• Green Finance: Launched green bonds and preferential interest rate loans to support sustainable energy projects, in response to the United Nations Principles for Responsible Banking, and won the "Israel Green Finance Pioneer Award" in 2023.

• Community Finance: Provide financial services close to the community through local branches, enhance customer stickiness, especially in Tel Aviv, Jerusalem and Haifa areas.

• Community Contribution: Support education and charity projects through the Otsar Ha-Hayal Foundation, donate 5 million Israeli NIS for community development in 2023, hold financial literacy lectures, and improve the financial literacy ability of young people.

market position and accolades

Otsar Ha-Hayal is one of Israel's small and medium-sized banks, with total assets of about 15 billion Israeli NIS (about $3.9 billion) in 2024, ranking in the middle of Israel's 38 banks. With about 30 branches serving about 500,000 customers, the bank has a strong position in military finance, community finance and SME support. In 2023, the bank reported an 8% increase in deposit balances, a 6% increase in loan balances, and a non-performing loan ratio remaining below 0.2%, indicating that it is operating soundly. Otsar Ha-Hayal's innovations in fintech and green finance have allowed it to remain competitive in the regional market. Major accolades include:

• the 2023 "Best Customer Service Bank in Israel" award.

• 2022 Israel Green Finance Pioneer Award.

• 2021 "Best Military Financial Services in Israel" award.
  Otsar Ha-Hayal's community focus and ability to innovate make it the backbone of Israel's financial markets.

With nearly 80 years of history, dedicated services and innovative financial products for military and community members, Soldiers' Treasury Bank Limited is a unique pillar of Israel's financial markets. It offers a wide range of deposit and loan products to meet customer needs through local branches and digital platforms. The digital services are centered on the "Otsar Ha-Hayal Mobile" application, which provides efficient real-time transfer and investment management functions. Technological innovations, including AI customer service, open banking APIs, and mobile payment platforms, demonstrate its forward-looking digital transformation. With its dedicated services for military and veterans, SME support, green finance, and multiple industry accolades, Otsar Ha-Hayal continues to demonstrate strong competitiveness and influence in the Israeli financial markets.

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