Enabling simple and transparent fund management
With one of the fastest-growing fintech markets on the planet, Israel is leading the way when it comes to innovative start-ups and online trading pioneers.
eToro is a social trading network, designed to financially empower individual investors through an innovative trading platform and an active social trading community. Ahead of the Efma’s Business Trip to Israel event, we caught up with Nadav Yur, eToro’s head of business development.
“eToro was created with the aim of revolutionising the way millions of people across the world access financial markets, by cutting straight through the jargon and unnecessary complexities of financial trading to deliver a simple, enjoyable and transparent trading experience,” Yur said. “The social character of the eToro network empowers investors to make smarter trading decisions by harnessing the wisdom of the crowd. Social traders can actually build personalised ‘people-based portfolios’, by copying other investors who are more proficient in particular markets or asset classes, and enjoy these traders success in their own account for free.”
The company is very ambitious, with Yur explaining that it is ‘seeking to influence millions of people’. In order to move towards making this vision a reality, eToro is collaborating with large banks in China and Russia.
“In China, we have created a strategic partnership with Ping An, one of the biggest financial groups in the country, and have just launched together an informational site to educate Chinese investors about the world of social trading that we created,” Yur explains. “We are working closely with fintech innovation and securities brokerage companies within Ping An, to expose our platform through many of their channels, and we have a strategic road map to integrate directly to their main mobile app, with hundreds of millions of users.”
eToro also recently entered a partnership with Sberbank, the biggest government-owned bank in Russia.
“We have a started executing a comprehensive joint marketing plan to offer Sberbank’s customers the eToro trading experience,” Yur says. “The average Russian investor is traditionally less exposed to global markets than European investors, for example, but with eToro’s platform they will be able to access foreign markets and tap into global investors’ experience and knowledge.”
Having previously worked with Bank Hapoalim, Yur is well placed to comment on the relationship between fintech companies and banks, and how this is likely to develop in the future.
“The modern fintech industry is still at an early stage, and no fintech disruptor is really that strong to effect the major banks’ revenues for the short term in a significant way,” said Yur. “Therefore, the approach I always led was focusing on the ‘opportunity with’, not ‘risk mitigation of’ disruptors. I believe that today the trend has shifted and everyone understands that financial incumbents are here to stay, and the relationship with the fast, agile and innovative start-ups could be symbiotic and mutually beneficial. I think that we will see more mature fintech companies like eToro, that are offering their market proven products and services as an attractive collaboration to banks, in various business models.”
Yur says that this trend will allow banks to expose their customers to innovative services, thus fulfilling the new customers’ expectations. He believes that banks will aim to retain their place as the main entry point for people’s financial needs, even if not on their own portfolio.
At the Efma Business Trip to Israel event this May, Yur and his team will be showcasing the eToro experience and presenting the company’s vision and insights about the future of the money management industry.
“We will obviously share our experience in entering new markets, and in partnering with big banks,” he said. “We have accumulated a lot of experience in managing such strategic partnerships, building the relationship, working together with various touch points in the organisation, and portraying a shared vision and road map that lets each side benefit from the cooperation.”
The Business Trip to Israel on 15-19 May 2016 is the perfect occasion to meet with eToro representatives, and to get hands-on experience via the on-site visits to major industry players and leading Fintech companies. The programme on: www.efma.com/israel16