High digital expectations in Israel
The Israeli private banking market is an interesting and a complex one to navigate.
The Israeli private banking market is an interesting and a complex one to navigate. It comprises family money made decades ago by established businesses and also, as Israel is a start-up nation, millionaires and billionaires who are generating large amounts of money from new ventures.
A decade-long Israeli tech boom has generated tremendous wealth. These entrepreneurs have been driving a need for new servicing and delivery models.
Wealthy Israelis have high expectations from their advisors in terms of knowledge, especially around tax and wealth-structuring issues. But now they have become increasingly tech-oriented and focused as well.
Local banks such as Bank Leumi offer Internet-based platform providing customers with comprehensive reports on their portfolio and a dynamic user experience. Leumi is also investing in algorithm-based robo-advice technology. “
Foreign banks in the country such as UBS and Pictet, are upping their digital games quotient in an increasingly crowded and fragmented wealth market as well.
The inflow of valuable human capital, with associated wealth generation effects, represents a major tailwind for both legacy and emerging private banking providers in Israel. Of course all these players need to take for granted the need for strong and robust digital services.
As the high-tech boom in the country continues, this need for better IT infrastructure will, no doubt, keep getting solidified.