Discount Bank & ezbob to establish digital credit company

Discount Bank and English fintech company ezbob are cooperating in the consumer credit and small business credit markets by establishing a company under the name Greenland. Discount will hold a 70% stake in the company, with ezbob to own the remaining 30%.

Greenland's credit marketing will be done through external entities throughout the network, such as communities of self-employed people and mothers after giving birth. The credit will be offered to all bank customers.

Discount's current consumer market share is only 15%, therefore the company is in the process of offering credit to customers of rival banks as well.

Discount is not the only bank that does this. Bank Hapoalim, Bank Leumi and the Bank of Jerusalem currently offer digital loans to customers of all banks. The difference that Discount is aiming to offer is in the underwriting capacity that will result from the cooperation with ezbob. High underwriting capabilities should enable a better interest rate adjustment for borrowers when strong customers will benefit from a relatively low interest rate and weak customers from a high interest rate.

Bank of Israel data shows that the average interest rate on variable rate loans from banks in Israel in January is almost 9% following the increase in interest rates. Discount believes that it will be able to compete with this interest rate, due to the access to open banking and the data analysis capabilities of ezbob. Beyond that, Discount, led by CEO Uri Levin, explains that the attractiveness of credit is not measured by the interest rate alone, but also by its high availability.