Mind the Tech NY
Bank Leumi CEO Hanan Friedman: Michael Dell is joining Leumi's tech fund
Friedman highlighted innovation, resilience, and foreign investment momentum at the Mind the Tech conference in New York.
Hanan Friedman - Mind the Tech NY
(Tomerico)
Today we are in New York, the heart of the American financial sector. The Unites States has a marvelous financial system, from which we – Israelis - can learn a great deal.
However, while speaking about the most developed banking system in the world, we - in Israel - can also be proud of our banking system, mainly when it comes to the development of advanced banking technologies and streamlining processes. Take for example, the efficiency ratio, which reflects how a company manages its resources.
At Bank Leumi, our efficiency ratio is less than 30% - the best ratio in Israel, and probably one of the best among banks in the world. The average efficiency ratio in the Israeli banking industry is 45%. At Bank of America, one of the largest banks in the U.S., the efficiency ratio is 68%. More than twice the ratio at Bank Leumi.
That means, that if Bank of America were to implement innovation and efficiency like Bank Leumi, its profits could have been more than double! I am sure that this enormous gap is a surprise to many of you.
But, for Israelis, this is not really surprising. One of the main ways that business organizations can enhance their efficiency ratio is by developing advanced technological tools that help to streamline legacy processes. The DNA of the Israeli entrepreneur is to always think about how to make processes more efficient, with less friction – and based on advanced data and AI capabilities.
The Israeli culture, that we are all so proud of, is endless improvements with creativity, uncompromising initiative, and a refusal to give up - despite the difficulties. This is what creates the option for entrepreneurs to develop breakthrough technologies that save money, improve customer service, and enable us to accelerate business activity - with far less expenses and risks.
And thanks to this unique culture, I believe that Israel will continue to serve as a prominent focus for investments by foreign investors. I can share with you that this trend is relevant not only in high-tech, but also in the financial sector, which knows how to adopt the organizational culture and advanced technologies of start-ups.
In fact, we at Leumi, have seen much interest of foreign investors. They understand that the business and competitive advantage we generate from our technology, improves not only our efficiency ratio, but also our ability to continue achieving remarkable results in the long term, while reducing our risks - credit risks and operational risks.
Even now, although Israel is still in a tense security situation, foreign investors are returning to Israel. We are in discussions with investors from all over the world, and we see their strong desire to invest in Israel. This is thanks to the Israeli DNA, thanks to Israeli innovation, and thanks to Israeli resilience. And this has become the opening discussion of every meeting with foreign investors.
Clear evidence of this interest can be seen in our new partner of the high-tech fund we recently launched. At our previous tech conference a few months ago, I announced the establishment of a fund totaling $77 million, marking the 77th year of independence of the State of Israel. This fund will finance companies that are developing new technologies.
Today, from this important platform, I am happy to share with you that Michael Dell, one of the largest tech investors in the world, is joining us. The fund set up by Michael and his wife Susan, will invest in our tech fund and will serve as partner of ours in this important initiative.
Michael and Susan Dell are true friends of Israel. They are Zionists, who do so much to strengthen the State of Israel. I am confident that together with them, we will provide significant boost to the Israeli tech industry and promote the next generation of breakthrough technologies. It is possible, and I am certain it will happen.
The impressive investment of the Dell Fund in our new fund is just one example of major foreign investors who are returning to make investments in Israel.
In my many meetings with businesspeople and investors from all over the world, I often hear them talk about “The Israeli miracle” and their desire to be part of this miracle. Yes, a miracle…no less.
We, as the largest bank in Israel, are here to ensure that other foreign investors, will continue to invest in Israel and contribute to its economic growth.
In this respect it's worth mentioning the important initiative led by the Bank of Israel, the Israel Securities Authority and the Tel Aviv Stock Exchange, that we at Bank Leumi immediately welcomed – to match trading days to the global market and add Friday as a trading day. The implementation of that commencing January 1st 2026, will give additional flow of investments to the Israeli economy by foreign investors.
This is our commitment, not just as leaders of the Israeli economy, but also, and perhaps mainly - as Israelis.
We have no other country. We have no other economy. And we have no other high-tech.
I will end with a prayer, from the bottom of my heart, for the swift return of all the hostages.
There is no more noble goal than this.
Hanan Friedman is the CEO of Bank Leumi.
Watch his full remarks in the video above.
First published: 09:57, 26.03.25
