Kriti PatelTLDR:
– There are over 500 Israeli fintech companies that have raised billions of dollars in the past five years.
– The relationship between banks and fintech companies is delicate, but fintech companies can improve banks’ ability to grant credit and help them retain customers.
Chen Amit, CEO of Tipalti, spoke on a panel at Calcalist’s Economy of Tomorrow conference about the state of the fintech industry in Israel. He emphasized that while the industry has seen success, there are challenges ahead. He mentioned that many struggling companies are looking to be acquired and that layoffs are becoming more common.
Tipalti, which provides payment solutions for businesses, has been successful in mitigating these challenges with its payment system. Amit noted that the company has achieved nearly zero abandonment rates and has become a dominant player in the industry.
Another panelist, Keren Danziger, CEO of the Pagaya Investment Funds, discussed the relationship between banks and fintech companies. She explained that while banks will remain in the industry, fintech companies can help improve their services and provide extensive data for credit analysis.
Or Liban, the Head of Israel and the Middle East at Airwallex, shared his perspective on the global fintech market. He highlighted the importance of innovation, strong technology, and companies that work globally. Liban believes that Israel has these qualities, making it an attractive market for global clients.
Limor Hassid Levenberg, Director of Data and Digital at Bank of Jerusalem, represented the traditional banking industry on the panel. She emphasized the growing power of customers and the need for banks to adapt to provide better services. She also mentioned the importance of collaboration between the fintech industry and banks to encourage further growth and competition in the market.
The panelists agreed that while there are many fintech companies in Israel, the country lacks a comprehensive financial services provider without human intervention. They emphasized the need for access to data, which is more readily available in larger markets like the United States.
The future of the fintech industry in Israel is uncertain, with challenges lie ahead. But the panelists expressed optimism and highlighted the potential for growth and collaboration between fintech companies and banks.
