Bank Objectives: Chairman of the Securities Authority against the banks

Anat Guata, surprised at the Securities Authority conference, when she spoke out against the banks: "The control of the financial consumer public, which has so far been in the hands of the banks, is moving to the battlefield of competition against new players that undermine traditional hegemony. The balance of power is changing."

Halisi and Megan Merkel were also "recruited" for the speech

Walla!

Of money

22/12/2021

Wednesday, 22 December, 2021, 10:07 Updated: 10:36

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Corporate Conference SEC does not sound like a place where dramatic things happen, let alone Froboktibim, but precisely because of this ballet speech "Game of Thrones" of Palestinian Authority Chairman Anat Gueta, who said:

"Consumers public financial control, which was to Thus in the hands of the banks, moves to the battlefield of competition against new players that undermine traditional hegemony.

The balance of power is changing.

This is not just a war for us, this is a war all over the world.

A war between the traditional world and the modern world, which is today in many ways, in a defensive position.

The consumer wants to receive financial services, with a minimum of cost and time and a maximum of simplicity - which are tailored to his personal profile.

As early as March 2022 we intend to grant first licenses to the new players who are on the doorstep.

The consumer public will be able to choose the financial service they need.

Whether it is loans, deposits, investment advisory services, mortgages and all the related banking services. "

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Anat Gauta: Her "Game of Thrones" speech, aimed directly at the banking system (Photo: Knesset Spokeswoman)

"The financial market is at war. The Game of Thrones is here, the centers of power and intermediation are being undermined and changing. The

control of the financial consumer public, which has hitherto been in the hands of the banks, is moving to the battlefield of new players undermining traditional hegemony." So did Mara Guetta, adding:

The balance of power is changing. The new players, the fintechs - Big Techs come up with new plans.

They challenge traditional business models. They come with more sophisticated weapons - technological and advanced.

This is not just a war for us, this is a war all over the world. A war between the traditional world and the modern world, which is today in many ways, in a defensive position. So what's our role as regulators? The role of all financial regulators, ultimately, is concern for the benefit of the consumer. Each regulator and regulator according to its mandate.

The challenge for all of us is to balance financial stability with sustainable competition.

So what exactly does the consumer want?

Receive financial services, with minimum cost and time and maximum simplicity - tailored to his personal profile.

But, a low cost to the consumer means less profit for the service provider.

In order to provide a quality and accessible service in a short time, one must adopt innovative technology that may be costly.

Sometimes it also requires a transformation of old systems in the news and a reduction in manpower.

Therefore, it is quite clear that the balance will necessarily be achieved at the expense of reducing the traditional profitability of the financial system.

But, will financial stability necessarily hurt?

Traditional Banking: Premature Banking Profitability is not necessarily a recipe for instability (Photo: ShutterStock)

A decline in banks' profits will not hurt their stability

To the last question she asked, Guetta herself answered, clarifying that hurting profitability does not necessarily hurt banks' stability:

"The link between reducing profitability and hurting stability is not bound by reality. Impairment of stability. In addition, it can be seen that in line with trends in the US and Europe, in the relationships between banks and fintech, banks can also benefit from the sale of services to fintech and not just from the sale of financial services to the end consumer.

As part of the changes currently taking place in the financial system, the Securities Authority has taken on the responsibility of regulating the activities of fintech in the field of financial information services and payment services.

We thank the Minister of Finance for the trust he has placed in us.

Fintech.

It's time for new and innovative factors to enter the market (Photo: ShutterStock)

In two more months: new players to the financial market

When will the regulatory changes take place that will allow competitors to enter the banks for activity? According Guetta, quickly: "In March 2022 we intend to license the first new players standing in the doorway. Who will the entry of new players? First of all, the public. The public can get a variety of services in a digital form and simplified by new players.

Consumers can choose The financial service he needs. Whether it is loans, deposits, investment advisory services, mortgages and all related banking services.

More will be affected by the move - small and medium-sized businesses. The new space created will allow small and medium-sized businesses to receive cheaper financial services. For fast and cheap non-bank credit using advanced technology and use of databases.

As you know, for every 1.3 businesses that open a year on average, one closes.

In practice, this is an average of about 30,000 businesses each year, partly because their access to efficient funding sources is limited or non-existent.

The non-bank credit market for small and medium-sized businesses has stalled since before and to this day stands at about 2.3%, of the total credit for small and medium-sized businesses.

This means that the banks are still in complete control of the fate of small and medium-sized businesses in Israel.

Our goal is to produce quality and inexpensive alternatives for small and medium-sized businesses.

Blockchain technology can no longer be ignored (Photo: ShutterStock)

The crypto cannot be ignored

Guetta also addressed the elephant cryptographic if it is found on the front of the conservatism of the banking, because now you can not entrust digital assets at the bank:

"When talking about the war in the financial market, we must also talk about the new market, raging and kicking striving to undermine the rules of the game. I'm talking about market crypt and asset digital also produces Risk as well as opportunity. Blockchain technology presents us with facts that cannot be ignored.

Technology challenges the law of securities, the definition of currency and the definition of financial assets and actually pushes us, the regulators to the corner. Regulation must keep pace The full economic potential inherent in the development of activity in

the country.The public can not realize profits and pay taxes in an orderly manner and also remains exposed to fraud and deception, without protection.

It is important to note that another consequence of this situation is the loss of intellectual property and revenues from technology developed by Israeli entrepreneurs in competing countries.

This is an unrealized opportunity, at this point.

A holistic regulation of the crypto field is required.

A regulation that will provide a comprehensive solution to all aspects involved in this activity.

The situation in which the world of digital assets is regulated and operates in a way that produces broad cracks,

creates delinquency, encourages economic crime and blocks the development of financial activity and the legitimate use of the tools it imparts.

I am glad that the Minister of Finance has placed this issue as strategic and set up a team to examine the long-term policy.

The Securities Authority is prepared for the challenge and is ready to assume the authority for holistic supervision of the field.

Megan Merkel as a source of inspiration.

If there is no room for women at the table, they have to produce it themselves (Photo: screenshot, Instagram)

The model for inspiration: Halisi and Megan Merkel

The end of his speech devoted Guetta on the status of women in the business world, which is considered still Territory male, also in late 2021:

"So I started playing the throne, so let's talk about Khaalis leadership, strong, intelligent, active in a male society, managed to reach behind the scenes to center stage and change The course of history and the way the game is played. There is a lot of Halisi in the Israeli market. Here too, in this hall. Each of them carries the dragon egg close to the heart.

It is time to release the dragon. In 2021, in an advanced and enlightened country, Israeli women stand out In Israel and around the world, only 16% of companies have more than 35% women on the board. To me this is an intolerable situation. This is not the world I want to leave to my granddaughters. Diversity means pluralism.

Gender diversity is the basis for everything. They are essential values ​​for ensuring the long-term sustainability of entities.

So how is it that in Israel we are still behind? The Israeli capital market is characterized by the fact that most public companies are controlled by controlling shareholders. Each of them has the circles closest to it.

They are mostly men. Not because they do not value women. Most of them probably have a successful spouse and daughters, of whom they are proud. Each of them is a potential Halisi. They are not sitting around the table, yet. At its simplest, women are not part of the club.

Therefore, I set up the 35 Plus forum - I believe it's time to act to change the situation. The forum will promote gender diversity, while connecting all stakeholders relevant to the topic. We will support companies that are interested in making a change and often do not know where to start.

Since we announced the establishment of the forum, we have received inquiries from many bodies interested in helping advance the move.

Gender diversity is perceived among investors around the world as a value - not just cultural and value - but as an economic value.

At the same time, in order to make an impact, in addition to the power of the controlling shareholder, the support of minority shareholders in the vote for gender diversity is required.

I congratulate the first investment house that declared last year that its voting policy would be based on gender diversity.

I invite and encourage more entities to join.

I will end with a quote from the words of Megan Merkel, the Duchess of Sussex.

Duchess Merkel attended the UN General Assembly on the occasion of International Women's Day in 2015 and in an inspiring speech said the following:

“‘ Women should have a place at the table.

They should be invited to join the table.

"And in some cases, when the table space is not available to them, well, 'they have to make the table themselves.'"

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Tags

• Securities Authority

• ISA

• Banks

• Fintech

• finance