Citigroup are now t
he second major bank to expand operations in Israel, after Barclays made the decision earlier in the year. While major brands such as Microsoft, Intel and Motorola have long established R&D facilities in high-tech and mobile communications, R&D within the financial services sector has yet to realise its full potential.
Acknowledging this situation, the Israeli Government established a scheme in 2010 to expose the opportunities to financial services companies. Under special circumstances, the government offers to meet some of the operational costs for R&D centres. Citigroup has recognised this opportunity and through the scheme been granted $25 million over five years to help finance the centre.
In a joint statement with the Ministry of Industry, Trade and Labor and the Ministry of Finance, Don Callahan, Citigroups's Chief Operations and Technology Officer explained how Citigroup “will add Israel to its portfolio of a centre of strategic innovation that will focus on the development of advanced products and applications for the capital market”.
While the financial and business benefits of having a major financial group arrive in Israel are obvious, the Israeli government is confident that the arrival of more financial R&D facilities will lead to a cluster that will emulate the renowned success of its high-tech incubators and thus offer an extra value to those choosing to establish facilities there.
Israel’s dramatic growth and development of information technology has been a major catalyst for the outstanding economic performance in recent years. In the banking sphere, Israel has developed specialist technology and programs in areas such as risk management solutions, brokerage compliance, fraud prevention and end-to-end software solutions.
With the technological advances coming out of Israel, coupled with the government incentives, it is believed that that Barclays and Citigroup are paving the way for future international relationships.
No comments:
Post a Comment