A revolutionary initiative in the Israeli banking system
TEL AVIV, Israel, March 10, 2021 / PRNewswire / – Leumi (TASE: LUMI) and Tarya Fintech have joined forces in a strategic initiative to develop and adapt Leumi’s (basic) mortgage system, as part of the Bank’s modernization project. The synergy between innovative technology and Tarya Fintech’s unique DNA and Leumi’s technological leadership, experience and knowledge will lead to the creation of an innovative, agile and customizable digital mortgage platform. The system will be developed with a holistic view of clients’ needs and financial decisions at different stages of their lives.
Although mortgage credit is one of the major fields of activity of the banking system (more than 30% of the banks’ credit portfolio is made up of mortgage loans), the process of taking out a mortgage is often very cumbersome. The new system will change the way mortgages are obtained, providing customers with a cutting edge, user-friendly and seamless experience throughout the process, when and where they choose. The system will offer unique functionalities, unheard of in the banking world, with the aim of reducing administrative formalities, shortening the subscription processes and simplifying the various approvals required – in order to offer customers a concise, rapid response, tailored to their needs. their needs.
The system, which is currently under development, will be available for use by Leumi and Tarya Israel in Israel; Tarya Fintech will be able to use the system to serve clients around the world.
Leumi, one of Israel’s leading banks, is considered a pioneer in banking innovation: in 2016, it became the first bank in the country to use cloud technology; in 2017, she created PEPPER, Israel’s first digital bank; and recently it launched a fully digital mortgage, which also allows clients to obtain mortgage advisory services through Zoom. The joint development of the system with Tarya will enable the Bank to make a leap forward in the field of mortgage loans.
Tarya was established in 2014 and has grown to become Israel’s largest P2P lending company. Tarya dominates the market thanks to its digital system of alternative investments, most of which are backed by real estate guarantees; among other things, the company has extended mortgages totaling approx. 1 billion shekels to the general public. Since its inception, more than 4.5 billion shekels was processed through Tarya’s platform. The outstanding amount of the company’s loan portfolio, backed by the company’s real estate guarantees, totals more than 2 billion shekels.
Founded by Eyal Elhayany, Varda Lusthaus and Assaf Shlush, Tarya has gained ground with a series of unique technological developments. Among other things, the company has developed an intelligent algorithm that generates a virtual credit score capable of predicting the borrower’s repayment capacity.
In december 2020, it has been reported that Tarya Israel is expected to go public, through a merger in the backbone of state-owned Luzon Real Estate, controlled by businessman Amos Luzon.
Hanan friedman, Chairman and CEO of Leumi: “Leumi is leveraging its techno-digital strategy – which has proven itself over the past year – through collaborations with fintech companies. This is the key to the bank of tomorrow, all the more relevant given the imminent entry of the open banking reform, which we see as an opportunity. Leumi intends to be a leader in collaborations and the first choice of FinTech companies, in order to bring innovative service value to customers of all banks. The collaboration with Tarya will further strengthen our focus on mortgages and allow us to take another leap forward in the rapid launch of disruptive products.
Jaime Schcolnik, Head of the Technologies division of Leumi: “Leumi is in a process of technological innovation, which notably involves the construction of a technological architecture allowing a leap into the future. banking reform. The unique collaboration with Tarya will lead to the development of a modern mortgage platform that will provide a rapid and varied response to clients’ needs “.
Tarya Israel CEO Shahaf Erlich: “I welcome the important agreement with Bank Leumi, which reflects the new banking world. With Leumi, Tarya will develop cutting-edge technology to improve the customer experience and revolutionize the mortgage market ”.
Assaf Shlush, Founder and CEO of Tarya Fintech: “We are proud to lead the first joint initiative of its kind between a fintech and a leading bank. For the first time in Israel, a fintech with a proven fintech platform and extensive international experience, partners with an Israeli bank at the forefront of substantial modernization, as a true fintech partner, to develop jointly a central system. We thank Leumi – who advocates an innovative approach to digital banking – for choosing Tarya Fintech to lead the development of the core mortgage system. We believe that this joint initiative is the first step in a strategic cooperation aimed at leveraging strengths, stimulating joint growth and creating significant added value for customers in Israel“.
Adi Molcho Weinstein
Vice President, Investor Relations, Leumi
SOURCE Bank Leumi