Israeli Bank Leumi is preparing to launch a mobile-only bank later this year, according to Finextra.
The application was soft-launched in Q2 as an online lending product. The platform will expand to offer both P2P payments and savings on an app called Pepper Pay.
Leumi CEO Rakefet Russak-Aminoach said in a conference in London earlier this week that she expects Pepper Pay to appeal to the world marketplace — becoming a worldwide startup phenomenon, like Waze or Taboola.
Finextra quoted Russak-Aminoach as saying: “The world is changing, and the walls that protect us are crumbling. We, the traditional banks, have only one choice: We must change our shape.”
The launch of Pepper comes at a time of cost-cutting, branch closures and mergers across Israel for Leumi. The bank also announced a retirement program, cutting 673 employees by the end of 2016.
This is a bold move by Leumi as banks worldwide continue to question their future as brick-and-mortar establishments in an age of digital transactions — and whether it is enough to offer electronic options while retaining their traditional structure. Leumi seems to be moving decidedly in a digital direction. Or, at the very least, Leumi is conducting experiments to test the digital waters.
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The banking system behind Pepper Pay is reportedly built on new technology that uses Temenos T24 as its core programming. T24 is a highly customizable financial management software platform for use in retail, mobile, universal and corporate banking, among other types.
