First International Bank to Merge with Technology Subsidiary Mataf
First International Bank has decided to merge its technology subsidiary, Mataf, into its core operations. The bank aims to enhance efficiency and integrate technological development directly into its banking infrastructure.
First International Bank is set to merge its technology subsidiary, Mataf, into its core operations. The decision was reached during a board of directors meeting last Tuesday, driven by the bank's ongoing efforts to improve operational efficiency.
Management representatives are scheduled to hold consultations with employee representatives ahead of the next board meeting slated for next week. In a letter addressed to staff, the bank's leadership stated:
"We are required to join forces and make technology an integral part of the core of the First International Bank's operations. Today, technological development, data, information systems, and AI are not just a supporting shell. They are the heart of modern banking. The move will enable strengthening synergy and efficiency, joining forces that will eliminate partitions, shorten processes, and upgrade the bank's capabilities and customer service."
The letter was signed by the bank's CEO Eli Cohen and Mataf CEO Laura Shechtner. The bank acknowledged that such an announcement might cause uncertainty, emphasizing that it views Mataf employees as a valuable and professional part of the collective. While management promised to maintain current salary levels, it noted that only core activities would remain at the Sorek complex and that only relevant parts of the 2023 collective agreement would be upheld, with potential adjustments to organizational and systemic instructions.
For decades, Mataf has operated as a separate subsidiary, providing services to the entire group, including First International, Otsar HaHayal, Massad, and PAGI. The company manages the group's technological infrastructure, including core banking systems, digital channels, data centers, and cybersecurity.
The merger decision comes amid tensions between the workers' committee and bank management, particularly regarding opposition to shifting from collective agreements to individual contracts. A labor dispute was declared at the bank last June. The Mataf workers' committee stated that the management's move signals a refusal to negotiate a new collective agreement, adding that they intend to push for real agreements that protect job security and the workers' union.
