Isracard Chair Tamar Yassur Reflects on Market Turbulence and Corporate Strategy

Years of uncertainty, repeated acquisition attempts, ownership changes, and intensifying competition in the credit card market have shaped Isracard's recent trajectory. Isracard Chair Tamar Yassur spoke on Monday in a conversation with Hila Weisberg at the Globes Next Generation Women Investors conference, held in partnership with Harel Insurance, Bank Leumi, and Strauss, addressing the turbulent period the company has undergone and the shifts following its acquisition by Delek Group, controlled by Yitzhak Tshuva.

"From 2020 until today, it feels like we have been in endless, shifting worlds, sometimes changing every single morning," Yassur said. Alongside the COVID-19 pandemic and the separation from Bank Hapoalim, Isracard faced a series of acquisition attempts starting in early 2023. The first was initiated by Harel Insurance, a deal ultimately blocked by the Competition Authority. Subsequent offers followed from Menora Mivtachim, Bank of Jerusalem, and others, culminating in Delek Group acquiring controlling stakes.

"It is highly problematic for a large public company to operate under such uncertainty," she explained. "You have to manage all of this and signal to investors that despite everything, the company is alive, growing, and developing, maintaining solid business operations and financial results. It is exceptionally challenging."

The Role of Controlling Shareholders

Yassur also addressed the differences between managing a public company without a controlling core versus one with a clear controlling shareholder. In companies lacking a controlling core, she noted, a delicate balance is required between strong management and an oversight board without paralyzing decision-making. "In companies with a proper, engaged controlling core rooted in knowledge, professionalism, and vision, I believe it provides tremendous tailwinds," she said.

She warned that leaderless companies often incentivize risk aversion because criticizing a failed business decision is easier than criticizing a decision never made. "Not taking risks is a terrible thing in the long run for companies, including in investments," she stressed, highlighting the importance of calculated risk-taking.

The Battle for El Al's Loyalty Club

A central theme of the discussion was the intense commercial battle over the partnership with El Al and its frequent flyer club, following years during which the airline operated in partnership with CAL. Yassur described the move as one of the most significant strategic opportunities emerging in the market once every few years.

"Once in a very long time, business partnership crossroads appear," she said. "When such an opportunity opens up in the market, it is natural, necessary, and expected of us to fight for it to the very end." She noted that negotiations were especially complex due to the small number of players in the industry and personal ties among executives.

"In Israel, at the end of the day, there is one El Al and three credit card companies; everything is very tight," she stated. "You must remain sharp, understand what you want to bring to the table, and not blink."

Advancing Women in Management

Turning to her career and the importance of promoting women to senior management roles, Yassur cited former Bank Leumi CEO Galia Maor as a pivotal figure who paved the way. When Yassur sought to compete for the CEO position at Leumi Card in 2010, she was warned it was too "masculine" a role. "Galia Maor charted a path. There are no female and male roles," she asserted.

She emphasized that responsibility for advancing women lies heavily with those who have already reached positions of influence. "I strongly believe in female leadership and in the duty of every woman in any managerial role, from the junior-most to the most senior, to advance women. Whoever fails to do so simply sins against her gender."

Critique of the Strum Committee

Addressing a question regarding the gap between credit card benefits in Israel versus the United States, Yassur explained that the primary factor is the low interchange fee paid by merchants on credit card transactions. "The interchange fee here is so low, less than a third of the US level. You need substance to provide benefits," she said.

Yassur also criticized the outcomes of the Strum Committee, which aimed to separate credit card companies from major banks to foster competition. "It was supposed to strengthen the companies and curb bank dominance. In practice, exactly the opposite happened," she argued.