Leumi To Launch Mobile-Only Bank

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.

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.