World of Banking Faces a Revolution, Says Bank Leumi Exec

The traditional world of banking is facing a revolution, according to Shmulik Arbel, head of the corporate and commercial division at Israel’s Bank Leumi. Arbel spoke Thursday at Calcalist’s WeTech Berlin 2020 conference, held in collaboration with Leumi and German real estate company Aroundtown Property Holdings PLC.

Arbel believes we are at the dawn of the age of open banking. “Until now, innovative banking has made us more digital and we learned to use our data more efficiently to offer the right product to the right client, at the right time and the right price,” he said. “But, at the end of the day, our traditional role as bankers has not changed much. Open banking, however, will do just that,” he said.

Open banking means financial institutions can offer fintech companies access to some of their most valuable assets, Arbel said. “The bank will provide the data, the customer base, and the clients’ trust and fintech companies will put their technologies and products on the table,” he explained.

Bankers are going to become financial guides for customers, advising them, for example, on the best time to replace their cars, helping them find an alternative, and providing financing through their bank or any other institution, Arbel said.

There is a brave new world of startup and bank collaborations out there, with new models of division of income, Arbel said.