Israeli Credit Card Firm Cal Establishes New Data and AI Division

Israeli credit card company Cal is integrating artificial intelligence into its core business operations by establishing a new Data and AI division. The company's board of directors has approved the creation of this unit, which will spearhead the use of data and AI models across Cal's products, services, risk management, and internal processes.

Amir Rosen has been appointed to lead the new division as Senior Vice President. Rosen previously founded and managed the AI center at Bank Leumi, reporting directly to the CEO. His move to Cal signifies the company's intent to centralize its data and AI activities under a senior management body, rather than keeping them within existing technology departments. Rosen brings over two decades of experience in technology and management roles, having previously been responsible for building and implementing Bank Leumi's AI strategy and managing other technological areas. His background also includes work in the insurance, retail, telecommunications, and high-tech sectors.

Cal sees significant potential in leveraging its vast data, which includes information from millions of credit cards and tens of thousands of businesses. With over 4 million cards issued, improvements in underwriting, fraud detection, credit assessment, and commercial offers can directly impact profitability. For instance, more accurate underwriting models can increase the number of approved credit applications without a proportional rise in losses, while early fraud detection can reduce financial damage. In marketing, analyzing customer behavior can enable personalized financial product offers and benefits.

This strategic move occurs during a sensitive period for Cal, as it remains under the majority ownership of Discount Bank (approximately 72%) and Bank International (approximately 28%) while a sale process is ongoing. The proposed acquisition by Union Group and Harel faces regulatory hurdles, prompting market speculation about alternative buyers and strategies. The ongoing competition for Cal's control, as Discount Bank seeks to divest, could influence the pace of technological investments and credit strategy. Meanwhile, Cal faces intensified competition from rivals Isracard and Max, all vying for market share in credit, loyalty programs, and payment processing, while seeking to deepen direct customer relationships and diversify revenue streams beyond traditional fees.

The success of Cal's AI integration will be measured not just by the number of tools launched, but by improvements in revenue, cost reduction, and the quality of its credit portfolio.