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 (core) mortgage system, as a part of the Financial institution’s modernization venture. The synergy between progressive expertise and Tarya Fintech’s distinctive DNA and Leumi’s technological management, expertise and information will result in the creation of an progressive, agile and customizable digital mortgage platform. The system shall be developed with a holistic view of purchasers’ wants and monetary selections at totally different phases of their lives.
Whereas mortgage credit score is without doubt one of the predominant areas of exercise of the banking system (greater than 30% of the banks’ credit score portfolio is made up of mortgages), the method of taking out mortgage credit score is commonly very cumbersome. The brand new system will change the way in which mortgages are obtained, offering clients with a leading edge, user-friendly and seamless expertise all through the method, when and the place the client chooses. The system will provide distinctive capabilities, new to the banking world, with the intention of decreasing pink tape, shortening underwriting processes and simplifying the assorted approvals required – as a way to provide clients a concise and fast response, tailor-made to their wants. their wants.
The system, at present beneath growth, can be utilized by Leumi and Tarya Israel in Israel; Tarya Fintech will have the ability to use the system to serve purchasers all over the world.
Leumi, one in every of Israel’s main banks, is taken into account a pioneer in banking innovation: in 2016, it turned the primary financial institution within the nation to make use of cloud expertise; in 2017, he created PEPPER, Israel’s first digital financial institution; and lately it launched a totally digital mortgage, which additionally permits purchasers to acquire mortgage advisory companies by Zoom. The joint growth of the system with Tarya will enable the Financial institution to make a revolutionary leap within the discipline of mortgage lending.
Tarya was established in 2014 and has grown to change into Israel’s largest P2P lending firm. Tarya dominates the market because of its digital system of other investments, most of that are backed by actual property ensures; amongst different issues, the corporate prolonged mortgages totaling approx. 1 billion NIS to most of the people. Since its inception, extra 4.5 billion NIS was processed by Tarya’s platform. The corporate’s excellent mortgage portfolio, backed by the corporate’s actual property assure, quantities to greater than 2 billion NIS.
Based by Eyal Elhayany, Varda Lusthaus and Assaf Shlush, Tarya has gained floor by a collection of distinctive technological developments. Amongst different issues, the corporate has developed a sensible algorithm that generates a digital credit score rating able to predicting the borrower’s compensation capability.
In December 2020, it has been reported that Tarya Israel is anticipated to go public, by a merger within the spine of public firm Luzon Actual Property, managed by businessman Amos Luzon.
Hanan friedman, Chairman and CEO of Leumi: “Leumi is constructing on its technological-digital technique – which has confirmed itself over the previous yr – by collaborations with fintech firms. That is the important thing to the financial institution of tomorrow, all of the extra related given the approaching entry of open banking reform, which we see as a possibility. Leumi intends to be a pacesetter in collaborations and the primary alternative of fintech firms, as a way to deliver progressive service worth to clients of all banks. The collaboration with Tarya will additional strengthen our business give attention to mortgages and permit us to take one other leap ahead within the fast launch of disruptive merchandise.
Jaime Schcolnik, Head of the Applied sciences division of Leumi: “Leumi is within the strategy of technological innovation, which incorporates the development of a technological structure that enables a leap into the long run. On this context, we make the most of technological collaborations with fintechs, permitting them to hook up with the Financial institution’s programs, within the banking reform. The distinctive collaboration with Tarya will result in the event of a contemporary mortgage platform that may present a fast and various response to purchasers’ wants “.
Tarya Israel CEO Shahaf Erlich: “I welcome the necessary settlement with Financial institution Leumi, which displays the brand new world of banking. With Leumi, Tarya will develop cutting-edge expertise to enhance the client expertise and revolutionize the mortgage market”.
Assaf Shlush, Founder and CEO of Tarya Fintech: “We’re proud to guide the primary joint initiative of its sort between a fintech and a number one financial institution. For the primary time in Israel, a fintech with a confirmed fintech platform and in depth worldwide expertise companions with an Israeli financial institution that’s on the forefront of considerable modernization, as a real fintech companion, to collectively develop a core system . We thank Leumi – who advocates an progressive strategy to digital banking – for selecting Tarya Fintech to guide the event of the core mortgage system. We imagine that this joint initiative is step one in a strategic cooperation aimed toward leveraging strengths, driving joint progress and creating vital added worth for purchasers of Israel“.
Adi Molcho Weinstein
Vice-President, Investor Relations, Leumi
SOURCE Financial institution Leumi