Bank Hapoalim (TLV: POLI) and Microsoft have announced the first collaboration of its kind in Israel: the establishment of a platform for the implementation of digital guarantees for private and business customers, using blockchain technology.
Hapoalim CEO Arik Pinto said: “Bank Hapoalim is proud to be the first Israeli bank to use blockchain technology to carry out bank guarantees, which is a revolution in the management of money and assets over the Internet, and is expected to play a central role in the smart economy of the coming decades.”
The new process will enable Bank Hapoalim customers to receive security documents in a digital, automated and secure manner, by way of a very short process and without physical arrival at the branch. The developers say that the use of blockchain technology will significantly improve the customer experience and the level of trust in the banking system.
“In an era of digital transformation, Microsoft Israel and Bank Hapoalim joined together with global teams to revolutionize digital, access advanced services and connect technology with business needs,” said Shelly Lanzman, CEO of Microsoft Israel. “Microsoft and Bank Hapoalim offer a strong partnership in developing the next generation of banking services based on blockchain technology, which enables to create real business / competitive advantage, saves costs and streamlines existing systems and services. Microsoft today supports a large number of blockchain technologies that enable the deployment of different types of networks according to the nature of the system and the business need on the Azure cloud platform. The main advantage of building and running blockchain based applications is the ability to use all the services offered in the cloud and integrate them into solutions such as: Big Data, Business Intelligence, Prediction capabilities, development environments and more. ”
Microsoft Israel provides the bank with cloud architects, laboratories and access to the development center.
“This is a business project that will change the rules of the game for our business and private customers, combined with the most advanced technologies in the world,” said Avi Kochva, Deputy CEO and Head of Innovation Division. “We are delighted that Microsoft has chosen the Bank’s Innovation Division as a strategic partner to launch a joint platform, one of the first in the world in the field of finance.”
The cooperation between the bank and Microsoft started following the Blockchain Summit, initiated by Bank Hapoalim’s innovation division, which took place in Tel Aviv in March of this year.
“We are working to provide our customers with the most advanced tools for their banking activities,” said Jacob Orbach, Deputy CEO and Head of Corporate Banking. The development of digital guarantees is a breakthrough for a world in which operations will be conducted without paperwork and without the need to transfer documents back and forth between the bank, the customer and the beneficiaries in guarantees.”