“Regulators will have to give incentives to FinTech companies, otherwise they will not operate in Israel”
“FinTech is a much more complex ecosystem than cyber and data. Businesses are required to understand the regulations and the players, and there are many barriers to it as well. Given the situation, entering the market is complex and expensive, so it is difficult to expect a small fintech company with limited resources to choose the Israeli market because it is very small. The local size disadvantage is very significant, so regulators will have to encourage companies to launch pilots without regulatory processes in order to overcome it. won’t happen on its own, someone will have to help it happen, otherwise the fintech companies will not operate in Israel ”,
Rakefet Russak Aminoach, Managing Partner of Team8 Fintech and former CEO of Bank Leumi, said in a conversation with Calcalist reporter Irit Avisar at the FinTech 2021 conference on Tuesday.
According to Russak Aminoach, clients move very slowly in the financial world, sticking to traditional institutions. “The powershift in the financial arena is very slow. So what we are seeing is that the big players have the most customers and revenues, even though their service and product are lagging behind, even though they have tried and adapted. On the other hand, we see fintech companies with advanced products or services, have a small number of customers. This is why fintech companies cooperate with traditional entities, serving customers where they are. In addition, there is also a new group of fintech players, companies that are not financial but have realized that whoever has customers has power, companies like Uber or Shopify, who also collaborate with financial technology companies.
Although many are becoming fintech players, Russak Aminoach does not see a bubble in the field. “Recently there has been a lot of money in high tech, as well as in the capital markets. We are seeing a period where excess money creates very high values. It is not just fintech. or high tech and not just Israel Although the number of Israeli unicorns since 2020 is more than 10% of the global amount, and we are talking about a huge hype, what we are seeing here is above all the maturation of high-tech industry in Israel. entrepreneurs here, for some of them it is not the first time and not the second time, but it is broader than Israel and fintech. I believe these worlds have waves, they are never at the same height but I wouldn’t call it a bubble. There are times when everything is high and then there is a correction. I think there will be a correction ” , she said.
Regarding the issue of recruiting high-tech workers in Israel, Russak Aminoach said that it is impossible not to feel the talent tightening, but that is the magic of startups, so it is good that talent is courted. . “One of the great advantages of Team8 is that we have excellent access to talent from elite army units. 60% of our employees come from these units, and 70% of recruitments are made through recommendations from friends. We have 600 people referring people they know, so it’s easier. Of course, there is competition for people and the wages are going up, but I never believed that the first reason a person chooses a position was the salary. In high tech, fairness is more important than salary because it is a much more significant part. A lot of these kids don’t really come in every morning and kill themselves for their startup because of the salary, there is something that has to attract them, either what the startup is building or their role is very interesting. There has to be some really high quality packaging, and they consider everything. ”