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The Banking Supervision Department’s annual conference took place today in Tel Aviv. The conference, themed "Banking of Tomorrow," focused on the challenges and opportunities in the future financial era. This includes groundbreaking technological changes, structural shifts and reforms led by the Bank of Israel, and changes in public preferences affecting various banking products and the creation of new business models.
Bank of Israel Governor Professor Amir Yaron opened the conference. In his remarks, he touched on the 2026 budget, stating, "The market confidence Israel has earned is largely based on the budgetary adjustments made by the government in 2024–2025, following the Bank of Israel's recommendations. The main message was that after the rise in the debt-to-GDP ratio, we will move to a downward path as hostilities subside. Now, this goal must be realized, with a deficit target not exceeding slightly over 3% of GDP. Meeting the deficit targets and a declining debt path require fiscal responsibility, necessitating significant expenditure adjustments and leaving very limited room for further budgetary relief."
Supervisor of Banks Daniel Hahiashvili outlined the main directions for the development of Israel's banking system in the coming years. In his concluding remarks, he stated, "The banking system of tomorrow, part of which is already here, will be more balanced, diverse, and competitive. It will include large entities benefiting from economies of scale, but also additional entities constantly challenging the big players, with the potential to grow and develop. It will be a healthier market with mergers between participants and collaborations aimed at creating real and lasting value for the customer."
Dr. Danny Gold, Head of the Directorate of Defense Research and Development at the Ministry of Defense, delivered a lecture entitled "Turning Vision into Security". In it, he reviewed how innovation, creativity, and initiative are turned into action patterns, and how to ensure Israel's qualitative edge on the current and future battlefield. The lecture provided insight into the thinking that created the world's most advanced systems, such as air defense systems, munitions, lasers, and AI, and detailed how they were utilized in the Operation Rising Lion against Iran. Dr. Gold also discussed how his directorate has adapted as an organization to the technological and strategic changes of recent years.
Ms. Riki Elias, Deputy Supervisor of Banks and Head of the Off-Site Evaluation Division, presented how the Banking Supervision Department is preparing for future oversight, including the integration of innovative infrastructures and practices. Elias reviewed key trends in Israel and globally, including various business opportunities alongside emerging risks, both traditional and new. The strength and effectiveness of supervision are partly derived from the extensive information the Department has about the supervised entities and the ability to analyze it and draw conclusions in real time. The integration of such innovative tools will enhance the performance of risk profile assessments of the supervised entities through advanced analysis capabilities to derive insights from the growing data, including quantitative and qualitative reports, Board of Directors minutes, risk documents, and more.
During the conference, a panel on "The Graduated Outline" was held, moderated by Ms. Sima Spitzer, Head of the Licensing and New Banks Unit at the Banking Supervision Department, with the participation of Mr. Yogev Gardos, former Head of the Budget Department at the Ministry of Finance and Cochair of the Team to Increase Competition in the Banking System; Professor Shmuel Hauser, Chairman of the Board of Esh Bank; Ms. Maya Liquornik, Chairwoman of the Board of MAX; and Professor Dan Amiram, holder of the Sapir Chair in Capital Markets and Financial Institutions at Tel Aviv University and Chairman of We-Sure Insurance. The panelists discussed the reform allowing new participants to offer banking products with various regulatory reliefs and debated the implementation of the reform and its impact on shaping the financial system.
The conference also featured TED-style talks on the use of innovative technology and AI by banking corporations and how banking products will change. The talks were delivered by Mr. Eyal Ben-Haim, Senior Vice President and Head of the Banking Division at Bank Leumi, who presented the bank's service approach in recent years and how the use of technological tools enables the realization of this change in perception and a leap in service and product development for customers; Mr. Ofer Levinger, Chief Technology Officer at Isracard, who spoke about innovation in the financial world; and Dr. Orel Babayoff, Head of AI at One Zero Bank.
The conference concluded with a panel on "How to Change the Market Map: The Integration of Nonbank Entities in Activity," moderated by Mr. Uri Barazani, Chief of Staff to the Supervisor of Banks, with the participation of Professor Dudi Gershon, Founder, Chairman, and CEO of "KashCash"; Ms. Michal Dan, Vice President of Credit, Phoenix Gamma; Dr. Hadas Yones, VP Global Compliance Program at eTORO; and Mr. Uri Natan, CEO of Revolut Israel. The panelists discussed the challenges and opportunities in integrating new participants into financial activities and creating alternatives for customers in the consumption of various banking products.