From: RegTech Analyst
Israel is already a leader of cybersecurity, but it is now getting an extra power-boost through a collaboration between Mastercard and Enel X, the energy company.
Together, they have announced that they are launching a new innovation lab in Israel to support the growth of FinTech and cybersecurity startups focused on the payments and the energy ecosystems.
The launch also marks a partnership with the Israeli government to advance these sectors. The new lab will be established in the southern city of Be’er Sheva, a city designated by the Israeli government as the cyber and FinTech capital of the world. The city is home to many cyber R&D centres of top global technology companies. The lab will obtain a three-year license and approximately $3.7m of public funding to cover the lab’s establishment, operational costs and proof of concept development with local startups.
“Today, as much as ever, organisations need to keep security at the forefront of all innovation,” said Ajay Bhalla, president of cyber and intelligence for Mastercard. “This new collaboration will allow us to draw from many partners and resources – including Israel’s renowned start-up economy – to help bring innovations to market even faster and reduce the growing threat and cost of cyberattacks.”
Francesco Venturini, head of Enel X, added, “The new lab gives us the unique opportunity to work with Israeli start-ups to bring innovative financial technologies to our millions of customers worldwide. By joining forces with an important partner like Mastercard, we will support these start-ups to develop and roll out best-in-class solutions in the FinTech and cybersecurity sectors.”
Investment in the country has soared in recent years from $118m in 2015 to $555.5m in 2019. FinTech Global’s research notes that both foreign and local investors have been funding FinTech companies to bolster their competitiveness on a global scale despite the country’s small domestic market. The growth in the Isreali FinTech ecosystem is most noticeable in the increased share of deals valued at $5m and higher which jumped by 36.6pp between 2015 and 2019.
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