Bank Hapoalim Moves to Merge Its Tech Subsidiary Matef Into Main Operations
Bank Hapoalim has decided to merge its technology subsidiary, Matef, into the main bank as part of ongoing efficiency measures. The decision was made at the bank's board meeting last Tuesday, with management planning consultations with employee representatives ahead of the next board meeting scheduled for the following week. In a letter to employees, CEO Eli Cohen and Matef CEO Laura Shechtner emphasized the importance of integrating technology as a core part of the bank's operations, highlighting that development, data, information systems, and AI are central to modern banking. They assured employees that their salaries would be preserved and expressed appreciation for their long-standing contributions.
Only Matef's core activities will remain at its current location in the Sorek complex, and only relevant parts of the 2023 collective agreement will be maintained. The bank noted that adjustments to existing collective agreements might be necessary due to organizational changes. Matef has served as the technology and operations arm of the Bank Hapoalim group for decades, providing services not only to Bank Hapoalim but also to affiliated banks including Otzar Ha-Hayal, Masad, and PAGI. It manages the group's technological infrastructure, core banking systems, digital channels, IT operations, data centers, and cybersecurity.
The merger decision follows tensions between Matef's workers' committee and bank management, particularly over the shift from collective agreements to individual contracts. A labor dispute was declared in June amid these disagreements. The Matef workers' committee criticized management's refusal to sign a new collective agreement, stressing the need for updated agreements that ensure job security and workers' rights, and opposing a return to individual contracts. They intend to engage in consultations about the merger with the goal of reaching genuine agreements that protect employees and their union representation.
