India's largest software services firm Tata Consultancy Services (TCS) will launch Israel's first fully digital bank in what is being seen as a transformative initiative that can impact the business model of other sectors as well.
TCS was selected by Israel's Ministry of Finance to transform its banking sector by building a banking service bureau that would serve as a shared, plug-and-play, digital banking operations platform powered by the TCS BaNCS Global Banking Platform - to help start-up banks launch their operations very quickly, the company said in a press release.
"This initiative is seen as a bid to boost competition in the financial services sector, spark greater innovation and enhance customer experience by democratising access to banking in Israel by making financial services accessible to the consumer," the release said.
"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," it added.
The yet to be named digital bank is the first to receive a banking license in Israel in over 40 years and is to be launched in 2021.
The fully digital bank will have no physical branches and will provide Israeli citizens with all the services that regular brick and mortar banks offer, including credit, deposits, loans, account management, securities trading and processing.
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The new bank will also have access to all of Bank of Israel's liquidity tools and various payment systems.
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 the development of innovative and differentiated services," Shouky Oren, the Chairman of the new bank, was quoted as saying.
TCS is uniquely positioned to deliver these services due to its market ready and industry leading TCS BaNCS Global Banking Platform as well as its ecosystem integration, Oren noted.
The TCS BaNCS Global Banking Platform, also available in a SaaS (system-as-a-service) model, is an integrated Israel-ready suite that helps banks and financial institutions offer innovative products and services to customers throughout their life journeys, based on their anticipated requirements and over the devices of their choice.
Its API-enabled components support wealth management and retail, corporate and private banking, including digital banking for all segments. The platform has been installed successfully at 450 sites so far with around the clock availability.
The government of Israel is on a path to transform banking in the country with the services bureau transformation initiative. TCS is proud to be the preferred partner and play a vital part in the democratization of the financial services industry in the country," TCS Israel's country head, Eyal Moskal, was quoted as saying.
"Our platform will embrace an ecosystem led approach to innovation and deliver enhanced outcomes for the Israeli banking landscape. Other sectors too, could leverage this business model to provide financial services to customers, Moskal stressed.
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