Israeli Bank Investment Advisory Assets Hit Record High Amid Advisor Decline
Assets under bank investment advisory services in Israel reached a record high of approximately 485.6 billion shekels by the end of 2025, marking a 16% increase year-over-year and continuing a three-year growth trend. The number of advised accounts also rose by about 7,775 to 337,255. The Israel Securities Authority attributed this growth to asset appreciation, new capital inflows, and an expanding client base.
Despite the surge in assets, the number of active investment advisors in banks has fallen for the fourth consecutive year. In 2025, there were 1,068 licensed investment advisors, down from 1,149 in 2024 and 1,360 in 2021. This represents a decrease of over 20% in advisors within four years, while the volume of assets they manage has significantly increased. Nevertheless, bank advisors still constitute about 70% of all active investment advisors in Israel.
Sפי זינגר, Chairman of the Israel Securities Authority, stated that the 2025 data reflects an expansion in the bank advisory market, with growing asset values and account numbers indicating increased investor engagement. The average advised account value climbed to 1.44 million shekels, a 13% increase from 2024, driven by faster asset growth than client growth. Conversely, smaller accounts (under 300,000 shekels) decreased by 10%, though some of this decline is due to accounts moving into higher value categories.
Investment advisory services in Israeli banks heavily favor domestic assets, with approximately 83% of advised assets in Israeli securities and financial products, compared to 17% in foreign products. Mutual funds remain the primary investment vehicle, though there's a shift within funds: active funds' share increased to 39.2% from 35.1% in 2024, while money market funds' share decreased to 42.6% from 45.5%. The trend shows a move from money market funds towards actively managed funds seeking higher returns.
Despite a wide array of investment options, advisory activity is concentrated, with the top 50 most recommended products accounting for 37% of all advised purchases. Money market funds and active funds dominate this concentrated list. Inbal Pollak, Head of the Investment Department at the Israel Securities Authority, emphasized the authority's focus on making the capital market accessible and improving service accessibility for relevant solutions.
