Menora ERN Expands into Consumer Credit Market to Rival Banks
Menora ERN is expanding into consumer credit, offering loans to households and SMEs. CEO Shai Perminger outlines the firm's strategy to compete with banks and credit card companies amid rising living costs.
Menora ERN, the credit arm of Menora Mivtachim, has announced its expansion into the consumer credit sector, offering general-purpose loans to households and small-to-medium enterprises (SMEs).
Expanding Beyond Point-of-Sale Finance
Until now, the company focused primarily on point-of-sale financing. Menora ERN currently manages a credit portfolio of approximately 2.5 billion shekels and operates across some 16,000 businesses.
In a recent press interview, CEO Shai Perminger discussed the strategic shift, addressing the rising cost of living, growing competition with traditional banks and credit card companies, and the firm's growth objectives.
Long-Term Market Goals
When asked whether this move serves as an alternative following Menora's failed acquisition bid for Isracard, Perminger noted that while the group previously evaluated a credit card company acquisition, Menora ERN operates independently with full backing from its parent group.
Perminger stated that the company aims to become a prominent player in the consumer and SME credit market within three years. He emphasized that given the firm's standing, the new venture is designed to establish a substantial market footprint rather than a marginal presence.
Addressing Market Demand and Competition
Commenting on competition with major banks, Isracard, Max, and CAL, Perminger highlighted that households and small businesses increasingly seek flexibility and alternatives to traditional bank credit lines and restricted credit card limits.
Regarding economic pressures and the cost of living, Perminger noted an undeniable increase in public demand for flexible payment spreading and better cash flow management beyond standard credit card offerings. As non-bank financial institutions continue to enter traditionally bank-dominated domains, the expanding market fosters beneficial competition that ultimately serves consumers.
