Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS), a leading global IT services, consulting and business solutions organization, announced that Israel’s first fully digital bank, has partnered with TCS as the first customer of its Banking Service Bureau, powered by TCS BaNCS.
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. 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. 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 digital bank, which is yet to be named, is the first to receive a banking license in the country, in over 40 years and is set to launch in 2021. It 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. The new bank will have access to all of Bank of Israel’s liquidity tools and various payment systems.
Shouky Oren, chairman of the new bank, said, “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. 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.”
Eyal Moskal, Country Head, TCS Israel, said, “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. 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.”
“TCS and the TCS BaNCS Global Banking Platform will help new and existing banks in Israel quickly adopt a modern digital core banking solution and benefit from our continuous investments and product roadmap,” said Venkateshwaran Srinivasan, Head, TCS Financial Solutions. “We are committed to the success of this transformational initiative.”