Bank Leumi and Tarya Fintech have joined forces in a strategic initiative to develop and adapt Leumi’s (core) mortgage system, as part of the Bank’s modernization project. The synergy between Tarya Fintech’s innovative technology and unique DNA and Leumi’s technological leadership, experience and knowledge is leading to the creation of an innovative, agile and customizable digital mortgage platform. The system will be developed with a holistic view of customers’ needs and financial decisions at various stages of their lives. Assaf Shlush, CEO and Co-Founder of Tarya Fintech Holding, discusses this partnership and the future of banks and fintech’s working together.
- Please tell us about the partnership and solution we are building for Leumi.
A: Over the past few years, Bank Leumi, a leader in the Israeli banking industry, decided to undergo modernization and transformation. As a part of their modernization, they wanted to replace their Mortgage Core, which was outdated and detached from Leumi’s business ecosystem. Leumi approached us to be their fintech partner to develop a new core infrastructure to enable them to scale and develop their product. Tarya Fintech’s F-Paas was a game changer for them because they were able to build a banking core system on the cloud. Furthermore, our partnership enabled them to build custom configurations and scale it in the future, as well as work with different platforms like CRMs and BPMs as and additional tools.
- What is the “secret sauce” that Tarya brings to Leumi?
A: We are bringing a lot of innovation into the mortgage process for Leumi: not only on the technical side but also on the business process side by creating efficiency in an institution that is packed with administrative processes. Leumi considered both developing its own solution in-house or buying a solution from a global giant. When it was clear to them that Tarya has both technical and financial know-how and can offer a customizable, modular system tailored to their specific business needs, they decided to choose Tarya Fintech as their partner to develop the new mortgage core.
- What makes Tarya Fintech stand out given the fierce competition?
A: We built from scratch, a highly modular, micro services based architecture which we are able to connect to any service that will allow us and then implement it quickly. Another advantage that sets us apart, is that we are on the cloud, which enables us to have a very fast time to market, overcome regulations, have an open API and can very easily integrate into any territory or segment. Last but not least, I would say that we are not just a technical partner but also a business optimization expert with an understanding of the financial market; this is a major factor in how we stand out.
- Can you elaborate what you mean by business optimization partner?
Tarya can provide finance products at the bank’s level for any size business that wants that option with a modern touch. We are able to bypass bureaucratic processes, and with one click we can have all the customer’s information. We are able to optimize business processes, for example, the number of questions that we ask the end customer. This helps both bank employees and customers. Furthermore, there are major benefits for the end customer which include a smoother process for mortgage applications as well as significant time. All of this is able to be done with a lot of innovative approaches to modernizing banking as well as with professional and quick execution.
- How can Banks and Fintechs work together?
For many years conservative banks considered fintech as a rival, but eventually they understood that real competition is big technological monopolizing companies. Fintech companies are the solution to help accelerate bank processes while helping the banks comply with monopoly leveled customer experience. This will further the transformation and modernization including technological, digital and data. In most services everything will be digital, but there are financial products for businesses and real estate that people will still require a person. It won’t completely replace the bank. The regulators constantly verify that fintech solutions are stable and therefore some layers of this will still require the personal touch. Ultimately, Fintech companies are the user focused part of a financial system and at the same time, bank systems cant work without traditional banks. So it goes hand in hand.
- How do you see Tarya Fintech in this developing trend?
Alongside our revolutionizing partnership with Leumi, we see Tarya Fintech as a significant player in the global embedded finance market, with everything it takes: understanding of finance as well as technology, professional teams department, R&D and more. Having some projects in India, Africa and Europe under our belt, we plan on continuing an international expansion. Ultimately, we are continuing to build an F-PaaS in order to fulfill our mission of enabling any financial or non-financial organization worldwide with the ability of having their own financial product.