Creating Financial Freedom
I’m proud to say that my team at Arison Investments, especially my chairman and CEO, were totally with me on this vision, and since they are also board members of the bank, they were able to instill the same kind of excitement and understanding of how important this vision really is. One of the biggest challenges at the bank was to translate the term “financial freedom” into a term that was understandable and accessible with tools for action. Implementing this concept within such a very conservative organizational culture was not an easy process, and it required engagement from all levels of the operation.
It has been amazing to see the number of financial tools that the bank has created in order to assist both the employees and clients. Seeing the growth and success, including an online education network with advanced Internet tools, has given people of all ages access to learn how to independently manage their personal and family budgets.
The bank has since extended these online tools and training sessions to include even more financial solutions that people might need for every stage of life, focusing in particular on major milestones. The bank now has tools for schoolchildren who might be getting an allowance for the first time, and for young adults who are just starting out in their careers. As they settle down, buy a home, start a family, and plan for their children’s educations and their own retirement, the bank is with them with tools and training to help them along the way.
As a logical next step, the bank also launched a new personal financial planning service that serves as a major step forward in the quest for financial independence. And even more recently, there has been incredible adoption of financial planning apps that are easy to download and use in everyday situations.
A nostalgic addition to the bank’s new branding has been the re-launch of a cartoon character that many adults in Israel knew and loved as children—a character from the 70s and 80s called “Savings Dan.” Dan has proved to be a reminder to parents and an engaging and playful character for a new generation of children, to teach them the benefits of saving money for their futures.
Another key focus for the bank has been to support small businesses, whether they are our clients or not, by creating the Small Business Initiative, with hugely successful events and programs, including a national-scale Small Business Day. More than 35,000 small to mid-size businesses participated last year, which raised awareness for their companies, and their overall sales increased by 17% on that day.
At the same time, the bank continues to deepen its community commitment, to the point that the bank, as a leader in the Israeli economy, has become one of the largest donors in the country and a major source of volunteers for non-profit organizations. The branch network gives them a way to reach virtually all parts of the country.
The branches undertake local activities in two main ways. The first is to contribute corporately to worthwhile causes, and the second is to actively encourage and support employees toward volunteerism. In particular, the bank tends to support projects in which it can integrate financial education activities into its giving, helping non-profits and community members to stay financially strong so they can keep up their good work.
From its current leadership position, the bank is able to make a huge contribution in creating financial freedom. It has taken close to a decade of steady progress since I first envisioned “financial freedom,” but now I hear endless numbers of stories of the personal impact that is being made, and not just at the bank. We at the Arison Group have implemented this value across the board in all of our businesses and philanthropic organizations.
Financial Freedom in Action: Getting Ready for Retirement
One of the stories that touched me tremendously is Ilana’s story. She has been working in the company for many years now and, in fact, has the most seniority of anyone at our main offices. She supports herself and is nearing retirement. Over the years, Ilana had different roles within our philanthropic organizations, and for the past few years, she has been operations manager for the Arison Group, supporting both the business and philanthropic sides.
I don’t usually attend the forums; however, at one particular meeting, I was invited because the forum members wanted to update me across the board on what all of the businesses and philanthropic organizations were doing to implement the first four values, namely Financial Freedom, Sustainability, Giving, and Volunteering.
It was amazing to me to see and hear all that had been done, but I was most moved when Ilana took a spontaneous stand and asked if she could share what financial freedom did for her personally.
“Anyone who knows me knows how much energy I have, how I love to check each product four times, get five price quotes, and sharpen pencils on both ends to save money for the group,” she began. “But for me, for my own finances, nothing! I know it might not look that way. I have kept my personal papers neat and tidy in folders for thirty years, insurance papers and all that, but if you asked me what it all means, I could not say. I didn’t really know.”
By this time, Ilana had our attention. She spoke so candidly and passionately. “Then I came to the financial freedom workshop,” she said. “I had begun receiving payments from the national insurance institute because of my age, so I put those funds aside. But with regard to my own insurance and investments, after I attended the workshop, I realized that I actually had no idea what I had and I knew I needed to look into it.
“The next day I set up a meeting with the consultant, the same one who lectured in the financial freedom workshop,” Ilana continued. “I brought him in the whole stack of about ten kilos of paper. He went through everything, and I left the meeting with one single plastic sleeve containing ten pages, and I knew exactly what was on each page.”
I felt her excitement and enthusiasm as she continued explaining how empowering it was to finally know what she had and how she could better secure her financial future. “I learned to differentiate between an insurance salesman for a particular company and an independent consultant who speaks frankly and lets me know what’s best for me,” she said. “I learned you can negotiate better commission rates, management costs, and there is a whole variety of programs to consider, especially for my age group, what’s more risky and what’s less. I feel now that within five years when I want to retire, everything will be in place, because I was able to get this education,” said Ilana. “I don’t think I would have woken up to it on my own.
“But as it is now, I have made many fundamental changes in the programs and funds that I have, including transferring a substantial amount to a different company that will really help me manage my money well. After all, this is the money that I will have to live on and it is the same for you. I encourage the younger people sitting here to really look at your finances now, while you have time to implement the right changes that will work best for you in the long run,” she said. At that point, Ilana turned to me, looking me straight in the eye, and said, “Thank you!”
I was so deeply touched, and I could see the people in the room were too, while listening intently. I was happy that the message and the tools related to financial freedom had such an impact. I was amazed to see that the vision I had and its ongoing implementation had deeply impacted a human being and made a real difference in her life.
The Impact of Financial Freedom
There are many other stories like Ilana’s. Let me tell you about the outcome of the financial freedom workshops held at Salt of the Earth, one of our Arison Investment companies. Employees and their spouses were encouraged to attend and learn financial management skills to help them with their personal lives and goals.
The statements that we received after the workshop were personal and moving. One forklift operator said, “My eyes were opened after the financial freedom workshop, and already from the first meeting, there is apparent change and it is a big change—how to manage my affairs and make more informed financial and calculated choices. Following the seminar, I realized that many things rely solely on me. I decided to commit my family and myself to this purpose. We all joined