Tech TLV"We aim to enable customers to conduct financial planning with the same ease as planning a route on Waze"
Tech TLV
"We aim to enable customers to conduct financial planning with the same ease as planning a route on Waze"
Eyal Efrat, First Executive VP & Chief Information Officer at Bank Leumi, spoke at the Tech TLV conference about the technological revolution that the world of finance and banking is undergoing. According to him, "AI has the potential to rewrite the rules of the game in the banking world."
"The world of finance and banking is undergoing a technological revolution that is pushing it beyond the boundaries of what we know," said Eyal Efrat, First Executive VP & Chief Information Officer at Bank Leumi, at the Tech TLV conference hosted by Calcalist and Bank Leumi. "The changes in the world and the technological revolution in fintech have driven banks to accelerate their advancements and become far more technological than ever before."
"In today's digital age, banks essentially operate as technological entities, offering financial services with user experiences that are increasingly similar to modern applications," Efrat continued. "Large banks are investing substantial resources in advanced technologies to deliver a new customer experience and create dynamic, efficient, and innovative banking systems tailored to diverse customer needs. According to a study by J.P. Morgan, banks’ investments in technology rival those of tech giants. For instance, Amazon allocates about 12% of its operating costs to technology, while large banks have already reached 17%."
Efrat highlighted the transformative role of AI: "AI has the potential to rewrite the rules of the game in the banking world. The latest developments in AI offer tremendous opportunities to create faster, more personalized user experiences—exactly what customers now expect. This potential is also reflected in investments: the latest economic forecasts predict that the global banking sector's investments in generative AI will reach an astounding $85 billion by 2030, with an annual growth rate of 55%. Those who successfully leverage this technology will redefine the industry, and no one can afford to be left behind."
Efrat added, "When I imagine the future of banking services, I envision a seamless and intuitive experience. For example, we aim to enable customers to conduct financial planning—a traditionally complex process—with the same ease as planning a route on Waze. At Bank Leumi, about 90% of banking operations are already conducted remotely through digital platforms. Over a million customers access our digital channels every month. The challenges of the pandemic and the war accelerated this transformation and underscored that the future is digital. For example, reservists who couldn’t visit branches were able to perform operations such as adding a partner to an account, closing a mortgage, or even more complex tasks through Zoom or other digital means."
"Recent innovations we’ve introduced include AI chat tools for investment services, developed in collaboration with Israeli startup Bridgewise, and a solution called 'First Step to an Apartment.' This tool allows prospective mortgage holders to calculate their expected monthly repayment and even receive pre-approval for a mortgage—all online, in minutes," Efrat noted.
"But for us, this is only the beginning. We are constantly looking ahead, identifying new challenges, and seeking innovative solutions," he emphasized. "That’s why I’m here today—to call on startups and entrepreneurs to help us craft unique experiences across all business sectors and deliver significant added value to Bank Leumi’s customers. For startups, this is a rare opportunity to collaborate with a leading financial institution, scale innovative solutions, and make a meaningful impact. For us, it reinforces our leadership in the market and ensures top-tier service and customer experience."
Efrat also discussed the bank’s approach to fostering innovation: "To quickly identify companies that can deliver added value, we’ve developed several initiatives. These include direct access to our technology division and the Garage, a venture capital fund focusing on investments in startups in fintech, cyber, data, and AI. If you have a real idea and want to make a significant impact, we invite you to join us in transforming the world of finance."
