Economy Ministry’s Multinational Corporations (MNC) program, led by the Chief Scientist, and Commonwealth Bank of Australia to fund fintech R&D.
As reported in International Business Times by Anne Lu;
Commonwealth Bank of Australia’s new deal with Israel’s financial technology company to fund joint research and development projects, signed last month, would be mutually beneficial to both parties, according to Israel’s Economy Ministry Chief Scientist Avi Hasson. CBA is the first Australian firm to join the Economy Ministry’s Multinational Corporations (MNC) program.
The MNC is known to work with several international and non tech giants in the development of new products in Israel for use around the world.
The MNC, under the direction of the chief scientist, will look for emergent but deserving fintech to financially support in terms of their research and development projects. Financial support, in line with the agreement, includes investments made through equipment lending, providing technological and regulatory consultations and even marketing directives. Consequently, the company chosen should coincide with the bank’s criteria to offer specific business solutions.
The deal is part of Israel’s thrust towards the development of stronger research and development efforts with countries around the world.
The parternship with Australia’s largest bank is a testimony on the global scope of the project.
Israel’s giant leap in the fintech industry
Techcrunch described Israel as a country where, “Hundreds of local start-ups are developing new technologies for payment and security solutions, and multinational companies and banks are flocking to Israel for a piece of the action.”
Studies revealed that investor interest in Israel’s fintech grew 15 percent in 2014, and about 43 companies raised capital in the first three quarters of 2015. Quoting IVC Online, Techcrunch noted that the 61-company record US$369 million (AU$510 million) funds raised in 2014 will break records in 2015.
Furthermore, Israel is fully aware that the success of its fintech industry stems from other sectors such as finance and technology, which the country is known for. Its large and innovative financial sector has successfully overcome the 2008 financial crisis and it possesses sturdy security solutions.
Fintech in Israel is one the country’s growing high tech sectors alongside new fintech hubs such as Australia. The continuing support from banks and the government paved the way for continued exchange of resources, human capital and innovation from sectors where Israel has already established itself as a world leader.