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Israeli Lender Commits to Tech

Bank Hapoalim and its investment banking subsidiary Poalim Capital Markets have set up a fund to invest in technology companies that focus on developing products for the financial sector, writes reuters. Over the next three to five years, the fund will allocate about 80 million shekels ($21.3 million) for investment in financial technology companies. Poalim Capital Markets has experience in private equity, venture capital funds and investments in technology companies and will lead the investment activities of the project.

Reuters – Bank Hapoalim and its subsidiary Poalim Capital Markets set up a fund to invest in technology companies that focus on developing products for the financial sector, Israel’s largest commercial lender said on Thursday.

Over the next three to five years, the fund will allocate about 80 million shekels ($21.3 million) for investment in financial technology companies.

“Our main objective is to harness technological innovations to enhance the range and quality of services we provide our clients,” said Zion Kenan, CEO of Bank Hapoalim.

Poalim Capital Markets, the investment banking arm of the bank, has experience in private equity including venture capital funds and in principal investments in technology companies. It will lead the equity investment activities within the project.

Companies selected will be able to take the development of their products forward with the assistance of trials and installation in the bank’s systems. In parallel, some of them will also be awarded an investment by the fund.

The fund will focus on investing in companies that are in early stages, after or together with investment by a leading VC fund in the company. It is estimated that the fund will be involved in 15-20 technology projects at various stages of development.