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Israeli Bank Leumi Joins Forces with Tarya Fintech to Develop Mortgage Operating System

Leumi and Tarya Fintech have joined forces in a strategic initiative to develop and adapt Leumi’s mortgage system, as part of the Bank’s modernisation project. The synergy between Tarya Fintech’s innovative technology and unique DNA, and Leumi’s technological leadership, experience and knowledge will lead to the creation of an innovative, agile and customisable digital mortgage platform.

The system will be developed with a holistic view of customers’ needs and financial decisions at various stages of their lives. Although mortgage credit is one of the major areas of activity in the banking system (more than 30% of banks’ credit portfolio is comprised of mortgages), the process of taking out a mortgage loan is often highly cumbersome. The new system will alter the way mortgages are obtained, giving customers a state-of-the-art, user-friendly and transparent experience across the entire process, at the time and place of the customer’s choosing.

“We are proud to lead the first-of-its-kind joint initiative between a fintech and a leading bank,” Assaf Shlush, Founder and CEO of Tarya Fintech said. “For the first time in Israel, a fintech with a proven financial technology platform and extensive international experience joins forces with an Israeli bank which is at the forefront of substantial modernisation, as a true fintech partner, to jointly develop a core system. We thank Leumi for choosing Tarya Fintech to lead the development of the core mortgage system. We believe that this joint initiative is the first step in a strategic cooperation aimed at leveraging strengths, boosting joint growth and creating significant added value for customers in Israel”.

The system will offer unique capabilities, new to the world of banking, with the aim of cutting red tape, shortening underwriting processes and simplifying the various approvals required – in order to offer customers a concise, speedy response, that is tailored to their needs.

Although currently under development, the system will be available for use by Leumi and Tarya Israel in Israel; Tarya Fintech will be able to use the system to serve its customers worldwide.

Tarya was established in 2014 and has become Israel’s largest P2P lending company. Tarya leads the market through its digital system for alternative investments, most of which are backed by real estate collateral; among other things, the company has extended mortgages totalling approx. NIS 1 billion to the general public. Since its inception, over NIS 4.5 billion has been processed through Tarya’s platform. The company’s outstanding loans portfolio, backed by the company’s real estate collateral, totals over NIS 2 billion.

Founded by Eyal ElhayanyVarda Lusthaus and Assaf Shlush, Tarya has gained traction with a series of unique technological developments. Among other things, the company has developed a smart algorithm that generates a virtual credit rating that is able to predict the borrower’s repayment capacity.

Leumi, one of Israel’s primary banks, is considered a pioneering innovator in the field of banking: as early as 2016, it became the first bank in the country to use cloud technology; in 2017, it established PEPPER, Israel’s first digital bank; and recently, it launched a fully-digital mortgage loan, which also enables customers to obtain mortgage consulting services over Zoom.

Hanan Friedman, President & CEO of Leumi said: “Leumi leverages its technological-digital strategy – which has proven itself over the past year – through collaborations with fintech companies. This is key to tomorrow’s banking, that is all the more relevant given the imminent entry of the open banking reform, which we regard as an opportunity. Leumi intends to be a leader in collaborations and the first choice of fintech companies, in order to bring innovative service value to customers of all banks. The collaboration with Tarya will further strengthen our business focus on mortgages and allow us to take another leap forward in the rapid launch of disruptive products.”

Jointly developing the system with Tarya will allow the bank to make a leap in the field of mortgages.

Jaime Schcolnik, Head of Leumi’s Technologies Division, added: “Leumi is in the process of technological innovation, which includes building a technological architecture that enables a leap into the future. In this framework, we leverage technological collaborations with fintech, enabling them to connect to the Bank’s systems, as part of the open banking reform. The unique collaboration with Tarya will lead to the development of a modern mortgage platform that will provide a swift, varied response to customers’ needs.”

Tarya Israel CEO, Shahaf Erlich: “I welcome the important deal with Bank Leumi, which is reflective of the new world of banking. Together with Leumi, Tarya will develop a cutting edge technology to improve customer experience and revolutionise the mortgage market.”


  • Tyler is a Fintech Junior Journalist with specific interests in Online Banking and emerging AI technologies. He began his career writing with a plethora of national and international publications.

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