India-based Tata Consultancy Services Ltd. (TCS), the country’s largest multinational information technology (IT) service and consulting firm, confirmed recently that it will launch the very first all-digital bank in Israel.
As previously reported, Tata’s neobank project aims to transform existing business and banking processes. TCS, which has head offices in Mumbai, was reportedly chosen by Israel’s Ministry of Finance to lead the nation’s digital transformation efforts by establishing a banking service bureau that will operate as a shared, plug-and-play, virtual banking platform.
TCS, which a subsidiary of the Tata Group and operates in 149 locations across 46 countries, uses its proprietary BaNCS global banking platform to assist emerging or new banks with launching digital platforms in a fast and efficient manner.
TCS’ management noted:
“This initiative is seen as a bid to boost competition in the financial services sector, spark greater innovation and enhance customer experience by democratizing access to banking in Israel by making financial services accessible to the consumer.”
They added:
“It will serve as an online financial superstore through which an ecosystem of providers of services and products, such as insurance and credit cards, can reach out to the new generation of digital natives.”
The new digital bank’s name has not been announced. It’s expected to launch at some point next year.
It’s notably the first to acquire a banking license in Israel in more than 4 decades. The digital-only will offer all the typical financial services that physical branch locations provide such as credit, deposits, loans, account management, securities trading and processing.
The neobank will reportedly have access to all of Bank of Israel’s liquidity tools and standard payment platforms.
Shouky Oren, chairman of the unnamed bank, stated:
“We have achieved a key milestone in the Israeli financial services industry by being onboarded on to TCS’ Banking Services Bureau. This approach will reduce the cost of banking for the average citizen and foster development of innovative differentiated services.”