Israel Discount Bank Ltd. (Discount Bank) is a pioneer in Israel's financial markets, with a "trust-based, empowering future" philosophy that has demonstrated excellence in retail, commercial banking, international private banking and digital finance. Founded on April 5, 1935 in Tel Aviv by Leon Recanati and his partners Yosef Albo and Moshe Carasso, it was originally known as Eretz Yisrael Discount Bank Ltd. and was headquartered at 39 Yehuda Halevi Street, Tel Aviv, Israel. As a listed company on the Tel Aviv Stock Exchange (ticker: DSCT), Discount Bank serves approximately 1 million customers and is the third largest bank in Israel thanks to its deep heritage and innovative capabilities.

basic bank information

Discount Bank is a commercial bank, privately owned, founded on April 5, 1935 and headquartered in Tel Aviv, Israel. Founded by Leon Recanati and others, the bank initially operated from a small hotel on Nachlat Binyamin Street in Tel Aviv and later moved to 39 Yehuda Halevi Street. In 1944, the bank acquired Mercantile Bank and in the following years took over the local operations of Ottoman, Barclays and ABN AMRO. Between 2004 and 2010, the bank was privatized and the government sold its stake to investors such as the Bronfman-Sharan Group and Deutsche Bank. At present, the major shareholders include institutional investors (e.g. Harel Insurance, Phoenix Holdings) and public shareholders, and the holding structure operates as an independent company. 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 bank's SWIFT code is IDBLILIT and the Legal Entity Identifier (LEI) is 5493003NOCSC6LUWUF03. Discount Bank has 112 branches in Israel and branches in North America (via IDB Bank), Latin America and Europe, with a total of approximately 5,000 employees in 2024.

Deposit & Loan Products

Deposit Discount

Bank provides a variety of deposit products to meet the savings needs of individual and corporate customers:

• Demand Deposits: Including checking accounts and savings accounts, such as "Classic Checking Account" and "Basic Savings Account", with a minimum opening amount of ISS 100 and a base annualized rate of return (APY) of approximately 0.01%-0.1%, subject to confirmation of the latest interest rate through branch or online banking. The account supports flexible access and is suitable for daily fund management, and some accounts (such as military accounts) offer a free monthly fee (deposit service).

• 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 interest rate will vary according to 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 (time deposits).

• Featured products:

  • High Yield Savings Account: such as "Mafteach Discount Account", which offers an annualized interest rate of up to 2.0% with automatic deposit on every credit card purchase, and a balance of more than 10,000 Israeli shekels, with no monthly fees, Small savings are encouraged (Mafteach Discount).

  • 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 "Cloud Interest Rate" offer through the "Discount Mobile" app or online banking, and deposit products can be opened and calculated instantly, and some accounts can provide free transaction fee offers.

Loan Discount

Bank provides a comprehensive range of loan products to meet diversified financing needs

• 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 and high-net-worth customers), the floating interest rate will be based on the Bank of Israel's benchmark interest rate (about 4.5%), 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 (mortgage services).

• Car Loan: Support new and used car financing, with a loan amount of up to 500,000 Israeli NSHEs, a term of up to 7 years, an annualized interest rate (APR) of about 3.5%-6%, and a credit score of 660 or more (car loan service).

• 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 (personal loan).

• 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 commercial banking services (e.g. letter of credit, bill discounting) provide additional support to SMEs (commercial banking).

digital service experience

Discount Bank's mobile banking app, "Discount Mobile", is the core of its digital services and is available for download on iOS 14.0 and above and Android 9.0 and above, with an App Store rating of about 4.7 and a Google Play rating of about 4.5, with users praising its quick launch (in less than 2 seconds), intuitive interface, and multi-language support (Hebrew, English, Arabic, Russian, French) (Discount Mobile）。 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 pay, automatic debit, and e-statement, classify transactions in real time, and allow up to five bills to be paid at a time.

• Investment Tool Integration: Support stocks, funds, bonds, and ETF trading through the Tafnit Discount Asset Management platform, providing real-time market data and investment advisory services (Investment Services).
  The online banking platform "Discount 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 60% of customers complete transactions through digital platforms, significantly improving the user experience (digital banking).

technological innovationDiscount

Bank actively explores in the field of fintech and relies on its information technology division to promote 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.

• Blockchain technology: A blockchain-based trade finance platform will be launched in 2023 to simplify the letter of credit process and improve transaction efficiency and security.

• Other innovations: Apple Pay, Google Pay, and Samsung Pay support, and mobile check deposit for simplified operations; Partnering with AWS to optimize the cloud-based trading system; In 2024, it will invest 1 billion Israeli NIS to upgrade cloud technology and data analysis platforms to improve operational efficiency.

Featured Services & DifferentiationDiscount

Bank is known for its localized services and international private banking

• SME support: Customized loan and cash management services through Discount Business Banking, participation in the Israeli government's SME Financing Guarantee Program, loan approval in as fast as 10 seconds, up to NIS 3 million, SME loan balance increased by 12% in 2023 (Commercial Banks).

• International Private Banking: Customized wealth management, cross-border investment and foreign exchange services for overseas residents, returnees and newcomers, with 10% growth in assets under management in 2023 (international banks).

• 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.

• Mafteach Discount Program: Automatically save small amounts through credit card purchases, provide discounts and savings rewards, and the participating customers will account for 20% of the total customer base in 2023, significantly increasing customer stickiness (Mafteach Discount).

• Community Contribution: Support education and charity projects through the Discount Foundation, donate 30 million Israeli NIS for community development in 2023, hold financial literacy lectures, and improve the financial literacy ability of young people.

market position and honors

Discount Bank is Israel's third-largest bank, with total assets of about 239.1 billion Israeli NIS (about $63 billion) in 2024, ranking high among Israel's 38 banks. With 112 branches serving approximately 1 million customers (including 800,000 individual customers and 200,000 corporate customers), the bank has a strong position in retail, commercial and international private banking. 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. Discount Bank's innovations in digital services and green finance have enabled it to remain competitive in the regional market. Its international business accounts for 10% of total revenue through IDB Bank (New York), with a particularly strong presence in the North American and Latin American markets. Major accolades include:

the

• 2023 "Best Retail Bank in Israel" award.

• 2022 Israel Green Finance Pioneer Award.

• 2021 "Best Digital Bank in Israel" award.
  Discount Bank's community focus and ability to innovate make it the backbone of Israel's financial markets.

With its 90-year heritage, local services and innovative financial products, Israel Discount Bank Limited is a pioneer in 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 service is centered on the "Discount Mobile" app, which provides efficient real-time transfer and investment management functions. Technological innovations, including AI customer service, open banking APIs, and blockchain technology, demonstrate the forward-looking nature of its digital transformation. With its SME support, international private banking, green finance, Mafteach Discount program and several industry accolades, Discount Bank continues to demonstrate strong competitiveness and influence in the Israeli and regional financial markets.

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