Investment Advisors Leave Israeli Banks for Broader Market
Translated & summarized from Maariv by baba
The number of investment advisors in Israeli banks has fallen by over 300 in four years, as Israelis increasingly manage their own investments online. Despite fewer advisors in banks, the total assets under advisory have hit a record high, with the portfolio management sector also growing. Experts state the market is not shrinking but shifting to new models and locations outside traditional banking branches.
The story in 6 lines · by baba
- Investment advisors in Israeli banks dropped from 1,360 to 1,068 in four years.
- Israelis are increasingly opening independent online investment accounts.
- Assets under advisory in banks reached a record 485.6 billion shekels.
- The portfolio management sector grew 18.5% in 2025 to 493 billion shekels.
- Advisors' licenses are individual, not tied to bank employment.
- The investment market is shifting to new models and locations.
The number of investment advisors working within Israeli banks has significantly decreased over the past four years, dropping from 1,360 to 1,068. This shift reflects a broader trend where Israelis are increasingly opening independent investment and trading accounts, utilizing apps for self-directed trading and portfolio monitoring.
Despite the decline in bank-based advisors, the overall volume of assets under advisory has reached a record high of 485.6 billion shekels. This indicates that the demand for investment advice has not diminished but has instead moved outside the traditional banking system. "The branch stopped being the only place where someone who understands the capital market sits," noted one investment advisor.
The portfolio management sector has also experienced substantial growth, expanding by 18.5% in 2025 to manage 493 billion shekels across 131 licensed companies. This expansion suggests that the reduction in bank positions is not a sign of a shrinking market but rather a redistribution of talent and services to other financial entities.
Investment advisors who have transitioned out of banks emphasize that their professional licenses are tied to them as individuals, not to their employers. They see the move as a shift to new locations and models within a growing market, rather than an end to their careers. The broader landscape now includes investment houses, portfolio management firms, and independent licensed offices, catering to a growing number of self-directed investors who may become clients as their portfolios expand.
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