Israeli Finance Experts Debate Shifting Investment Landscape
Translated & summarized from Calcalist by baba
Israeli financial experts discussed the evolving investment landscape, noting a rise in independent trading influenced by social media. Panelists emphasized the continued need for professional investment management and cautioned against unregulated online advice. Efforts are underway to expand "Open Finance" in Israel to provide consumers with a consolidated view of all their financial assets, though challenges remain in integrating all financial products and data layers.
The story in 5 lines · by baba
- A significant trend towards independent trading is emerging in Israel, with increased trading accounts and volumes.
- Financial experts warn that social media influencers are becoming "new gurus" driving investment decisions in a "wild west" environment.
- The role of human financial agents remains crucial for bridging information gaps and providing support during critical life events.
- Israel is working to implement "Open Finance" to give consumers a comprehensive view of their financial assets.
- Challenges persist in consolidating all financial data, including pensions, savings policies, and independent trading information.
A panel discussion hosted by Calcalist, in collaboration with Ayalon Insurance and Finance, explored how Israelis should invest given the rapid changes in financial markets. Tamir Hershkovitz, VP and Head of Investment Division at Ayalon, noted a significant trend towards independent trading, with a near 80,000 new trading accounts opened at one firm and trading volumes on the stock exchange nearly doubling in the past year. He attributed this shift to a public desire for greater involvement in both long-term savings and discretionary funds, but cautioned against decisions influenced by social media "gurus."
Hershkovitz emphasized the continued importance of active investment managers and analysis departments within institutional bodies, suggesting that individuals should manage only 10-15% of their assets independently, primarily through instruments like ETFs and mutual funds. He contrasted this with the past, where such influencers were more regulated, stating, "The new gurus are social media influencers, and from there it's a wild west."
Reuven Titwani, Chairman of the Talpiot Agents Group, defended the role of human agents, asserting they remain relevant despite predictions of their demise. He highlighted that agents bridge information and execution gaps, providing crucial support during significant life events like claims or retirement. Titwani also stressed the importance of agents remaining objective, noting that his group has resisted acquisition by larger institutions.
Tal Israeli from the Ministry of Finance's Budget Division discussed the ongoing efforts to implement "Open Finance," inspired by open banking reforms. While the first layer, providing basic banking and credit information, is in place, she stressed the need to advance to a second layer that consolidates all financial data, including pensions and insurance, to enable informed decisions about major purchases like homes or cars. This requires legislation and infrastructure development.
Assaf Nachmani from the Israel Capital Markets, Insurance and Savings Authority confirmed that pension savings already operate under a form of open finance through a clearinghouse that aggregates data for all Israelis. However, he acknowledged this system currently excludes savings policies and independent trading. Nachmani expressed hope that a new tender for the clearinghouse will lead to more innovative and comprehensive data access in the coming months, though Israeli pointed out this still only represents one layer of financial information.
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