Ofek

What Ofek does

Ofek Cooperative Credit Union Ltd. is Israel's first licensed credit union, founded in 2011 in the wake of the Israeli social justice protests as a member-owned alternative to the country's five dominant commercial banking groups. The organization operates as a fully digital, branchless cooperative where every member purchases a single non-transferable membership share for ₪1,000, making members simultaneously the owners and the customers and eliminating the principal-agent conflict inherent in commercial banking. As of mid-2023, Ofek had over 14,000 members and was approaching its 15,000-member threshold required to launch full banking services.

The product suite centers on a digital current account, peer-to-peer loans facilitated through the Terra platform, group health insurance priced 40-50% below private market equivalents, a co-branded credit card integrated with the Meshekard benefits club (~4,000 merchants), and deposits with competitive interest rates. Add-on services include the FamilyBiz premium financial management app and the Ofek WhatsApp bot for 24/7 member support. Underlying technology infrastructure is provided by Tata Consultancy Services (TCS) under a government-subsidized banking computing services agreement, allowing Ofek to operate without building its own technology stack.

The business model is currently pre-launch for full banking services. Active revenue streams include one-time membership share capital, group health insurance partner commissions, P2P loan facilitation fees, and Meshekard club membership fees (which are fully refunded at year-end). Future revenue will derive from interest spread on deposits and loans, with all surplus reinvested into member services rather than distributed to external shareholders. Distribution is community-led via word-of-mouth, home gatherings, a WhatsApp chatbot, and workplace committee partnerships — exemplified by the Selcom workers union agreement covering 3,500 employees.

Name

Ofek

Legal name

Ofek Cooperative Credit Union Ltd. (אופק אגודת אשראי שיתופית בע"מ)

Website

https://ofek.coop

Company type

Private

Founded year

2011

Operating status

Operating

Headcount range

51–100 employees

Short description

Ofek is Israel's first licensed cooperative credit union, offering fully digital banking, peer-to-peer loans, group health insurance, and credit cards to ~14,000 member-owners who each hold a single ₪1,000 non-transferable share, ahead of full banking services launch.

Ownership category

akta.pro rank

Product category

Cooperative Credit Union / Digital Banking

NAICS

Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds (524292), Insurance and Employee Benefit Funds (5251)

SIC

Services-Membership Organizations (8600), Hospital & Medical Service Plans (6324)

akta.pro industry

PRIMARYFSAIAFAD

Small Group Health Insurance (2–50/100)

Financial & Insurance/Insurance — Life & Health/Group Health Insurance (Employer-Sponsored)

Keywords

• Cooperative credit union
• Digital banking services
• Peer-to-peer lending
• Group health insurance
• Member-owned banking

Headquarters

HQ city

Tel Aviv

HQ country

Israel

HQ region

Middle East

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Technology or R&D, Personnel, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Membership Shares: One-time sale of non-transferable membership shares at ₪1,000 per person. Each member can purchase only one share. Revenue used to build equity and fund operations.
2. Meshekard Club Membership Fees: Members pay ₪3.9/month (under ₪47/year) for Meshekard benefits club membership, fully refunded at year-end.
3. Interest Spread (Planned): Once banking services launch, Ofek plans to earn revenue through interest rate spread — offering lower lending rates and higher deposit rates than commercial banks, with all surplus reinvested into services.
4. Group Health Insurance: Ofek acts as a group health insurance policyholder, earning volume-based pricing advantages passed on to members as ~40-50% savings versus private insurance. Revenue derived from insurance provider partnership commissions.
5. Peer-to-Peer Loans via Terra: Member-to-member lending facilitated through Terra (טריא) platform. Ofek earns a facilitation fee on loan transactions between members.

Pricing tiers

Go-to-market motion1 record

Distribution channels5 records

Marketing channels6 records

Core offering

Ofek sells a non-transferable cooperative membership share for a one-time ₪1,000 to individual Israeli consumers, granting them access to a fully digital suite of financial services including a digital checking account, peer-to-peer member loans, deposits, a Meshakard-branded credit card, and tiered group health insurance priced 40–50% below private market equivalents. Members also receive premium access to the FamilyBiz personal financial management app and a 24/7 WhatsApp assistant, with all surplus reinvested into member services rather than paid to outside shareholders.

Product overview

Ofek is a cooperative credit union (אגודת אשראי) offering a full suite of digital financial services through a member-owned, democratic structure. The core platform centers on a digital checking account (חשבון עו"ש דיגיטלי), peer-to-peer loans (הלוואות עמיתים), a co-branded credit card with Meshakard benefits, group health insurance, and deposit accounts. Add-on services include the FamilyBiz Premium financial management app, the Ofek Bot WhatsApp assistant, and a benefits club with 4,000+ partner merchants. The cooperative model means all members are equal owners — each purchasing one share at 1,000 ILS — and profits are reinvested into better rates and services rather than distributed to external shareholders.

Differentiator

Problem solved

Functional benefit

Products and services

• Digital Checking Account (חשבון עו"ש דיגיטלי) A digital current account for managing income and expenses via mobile app and website, delivering full banking services without physical branches; planned for Israeli consumer members of Ofek.
• Peer-to-Peer Member Loans (הלוואות עמיתים) Member-to-member lending facilitated through the Terra (טריא) platform with fair terms enabled by the cooperative structure, where no controlling owner profits at members' expense; available to Ofek members who have purchased a share.
• Group Health Insurance (ביטוח בריאות קבוצתי) Group health insurance covering surgeries, treatments abroad, diagnostic tests, genetic testing, outpatient services, physiotherapy, and complementary medicine, available to Ofek members and their families at three tiers priced approximately 40–50% below comparable private insurance.
• Credit Card with Meshakard Benefits (כרטיס אשראי + מועדון משקארד) Credit card issued in MasterCard, VISA, and Amex brands with full exemption from card fees paired with Meshakard (משקארד) benefits club membership granting access to discounts at over 4,000 businesses across Israel.
• Deposits (פקדונות) Deposit accounts with competitive interest rates designed to give members meaningful returns on savings instead of the near-zero interest typical of Israeli commercial banks, planned as a core offering once full banking services launch.
• FamilyBiz Premium App (אפליקציית פמילי ביז פרמיום) Premium financial management app consolidating all bank accounts, credit cards, insurance, pension funds, savings, investments, and loans in one place, with budget tracking, savings-optimization alerts, and a financial support team available to Ofek members.
• Meshakard Benefits Club Membership (חברות במועדון משקארד) Resold access to the Meshakard benefits club network of ~50,000 members with discounts at approximately 4,000 merchants across Israel, including insurance, fashion, home goods, electronics, restaurants, cultural attractions, and point-of-sale discounts, integrated with Ofek's credit card.
• Cooperative Membership Share (מניית הצטרפות) A one-time, non-transferable cooperative membership share at a uniform price of ₪1,000 per person granting full member-owner rights, including voting in the general assembly, access to all member services, and the right to recruit additional members.

Quantifiable outcome

• Up to 50% savings on total annual household banking costs compared to commercial banks
• +4 more outcomes

Named customers3 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration2 records

Feature3 records

Partnerships

Five partnerships are on record, tiered flagship and core.

• Selcom Workers Union (ועד עובדי סלקום)flagshipChannel Partner/ Reseller/ Distributor · 9 August 2021Ofek signed its first workplace cooperation agreement with the Selcom workers union representing 3,500 employees. Under the agreement, Ofek created a dedicated 'social bank branch' for Selcom employees, offering a comprehensive financial platform including current accounts, credit cards, savings plans, tailored loans, guarantee and credit systems, savings encouragement programs, and financial advisory services — all under the Selcom union brand.
• Meshekard (משקארד)coreStrategic or Co-development PartnerOfek partnered with Meshekard benefits club (operated by the Kibbutz Movement's cooperative) to offer Ofek members access to its network of ~50,000 members with discounts at 4,000+ merchants across Israel. Ofek members receive a credit card branded with Meshekard (MasterCard, VISA, Amex) at no card fees, with club membership at ₪3.9/month fully refunded annually.
• FamilyBiz (פמילי ביז)coreTechnology or IntegrationOfek provides all members with premium access to the FamilyBiz app, which aggregates and manages all personal finances (bank accounts, credit cards, insurance, pension, savings, investments, loans) in one place, sending alerts for cost-saving opportunities potentially worth thousands of shekels per year.
• Tata Consultancy Services (TCS)coreTechnology or IntegrationOfek operates on technology infrastructure provided by Tata Consultancy Services (TCS) under a government-subsidized banking computing services agreement. TCS won the tender issued by the Ministry of Finance to provide technology infrastructure for new banking entrants in Israel. This partnership enables Ofek to launch digital banking services without building its own technology stack.
• Clean Money Forum (פורום כסף נקי)coreOthersOfek received the Clean Money (כסף נקי) certification from the Clean Money Forum — a coalition of dozens of Israeli environmental and social organizations. This certifies that Ofek does not invest member funds in polluting industries or entities that harm the environment and society. The certification involves a signed legal agreement and periodic re-verification.

Scale indicators8 records

Recent moves6 records

Expansion highlights5 records

Broad incumbents

• Bank Leumi: Israel's second-largest commercial bank with deep retail and SME presence. Leumi is a direct competitor for Ofek's target customers (Israeli households seeking fair pricing) and represents the type of incumbent Ofek's '50% savings' value proposition is benchmarked against.
• Bank Hapoalim: Israel's largest commercial bank with ~30% market share and the most extensive retail branch and digital network. Ofek's pre-launch full banking will compete directly with Hapoalim on retail deposits, current accounts, and consumer credit, making it the dominant incumbent benchmark.
• Israel Discount Bank: One of Israel's five major banking groups with a strong retail and mid-market presence. Discount is a comparable incumbent across deposit gathering, consumer credit, and digital banking — the segments Ofek plans to enter upon full licensing.
• Harel Insurance: One of Israel's leading insurance and financial groups with a major health insurance franchise. Harel competes directly with Ofek in the group health insurance segment Ofek targets through its member-pool pricing model.
• Mizrahi Tefahot Bank: Israel's third-largest bank with a strong mortgage and retail franchise. Mizrahi is relevant for its consumer credit and household deposit-gathering capabilities, the same product categories Ofek plans to offer post-launch.
• Migdal Insurance: Israel's largest insurance group with significant health insurance operations. Migdal is the primary incumbent against which Ofek's '40-50% lower' group health insurance pricing is benchmarked and represents the established alternative in Ofek's insurance product line.
• Clal Insurance: Large Israeli insurance group with health, life, and pension product lines. Clal is another incumbent in Israeli group health insurance, providing another reference point for Ofek's claims of 40-50% cost advantage through pooled-member pricing.

Direct peers

• Rabobank: Global cooperative banking group organized as member-owned local Rabobanks with wholesale banking arms. Rabobank is the archetypal large-scale cooperative bank, providing a template for how Ofek could scale member-owned banking, deposit aggregation, and product breadth while preserving democratic governance.
• Triodos Bank: Dutch cooperative and ethical bank that finances only sustainable businesses and is owned entirely by its depositors. Ofek shares the cooperative + mission-driven banking model and 'no polluting/arms investment' covenant with Triodos, making it the closest international comparable for business model and differentiation logic.

Emerging players

• One Zero Bank: Israeli digital-only bank targeting tech-savvy consumers with a mobile-first platform. One Zero is the most direct emerging competitor to Ofek in Israel's challenger-banking segment, competing for the same digitally native, fee-sensitive customer demographic.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks7 records

Key highlights7 records

Customer concentration

• Xx.com/ofek_coop
• Facebookfacebook.com/ofek.coop
• LinkedInlinkedin.com/company/ofek-credit-union

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles11 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Ofek