For the First Time in Israel: Pepper Will Allow 16 to 18 Year-Olds to Open a Fully-Mobile Bank Account, as their First Current Account
Rakefet Russak-Aminoach, President and CEO of Bank Leumi: "This is a significant leap forward that will enable us to accompany our young customers from their first encounter with the banking system while allowing them to manage their money in a new and innovative fashion, adapted to their dynamic lifestyle".
For the first time in Israel, youngsters will be able to open their first-ever bank account via mobile only. The Bank of Israel has authorized Pepper, Bank Leumi's digital bank, to offer customers aged 16-18 to open their first-ever current account. So far, Pepper customers could open a bank account provided they are over the age of 18 and are already holding a current account at an Israeli bank. Now, Pepper will be the first digital bank in Israel to allow 16-18 year-olds to open their first current account – from anywhere and at anytime - directly from their smartphones, and without the need to hold an existing account. The option of opening first-time accounts also to customers over 18 years of age will be available soon.
Upon its establishment, Pepper was the first Israeli bank to allow its customers to open a fully-mobile, commission-free account, without having to visit a bank branch. The short onboarding process included scanning two ID cards and a video chat with a representative. Now, with the understanding that many youngsters do not have two ID cards, customers aged 16-18 will be able to join Pepper in the same convenient and quick manner, with one ID card only - and without the need to hold a previous current account.
The move was made possible by the introduction of one of the world's most advanced facial recognition technology, which cross-checks the ID card and the facial scan.
Customers under 18 years of age will be issued an international Visa debit card, which can be used to conduct transactions in businesses, including online purchases in Israel and abroad. The instant debit card has a daily spending limit of up to NIS 400 (including cash withdrawals and payments) and doesn't
allow an overdraft in the account. In addition, in order to make banking more accessible to youths, the Pepper onboarding process also includes a parent information sheet and a basic banking glossary.
It is estimated that every year, approximately 130,000 bank accounts are opened in Israel by youths aged 16 to18.
Now, more youths will be able to join Pepper and enjoy a brand new, personalized and commission-free banking experience, with 24/7 customer service and an innovative user experience based on a personalized feed which includes consumer insights, real-time alerts on expenses, comparisons to people with similar profiles, expense analysis, etc. - all in a simple and friendly language.
Rakefet Russak Aminoach, President and CEO of Leumi: "In a world of constant change, promoting innovation in the organization is a basic existential need. The pace of technological development requires us to constantly question ourselves and adapt our business operations to an ever-changing reality. The option to open a first current account with Pepper is a significant leap forward that will enable us to accompany our young customers from their first encounter with the banking system while allowing them to manage their money in a new and innovative fashion, adapted to their dynamic lifestyle."
Michal Kissos Hertzog, CEO of Pepper: "We are proud to be the first to offer a fully-digital bank account to youths under 18. Pepper was initially created to serve as a user-friendly, convenient and cost-effective banking alternative, tailored to a young audience who has no idea why they need to visit a brick-and-mortar bank branch in order to open an account. This is a revolution that will enable youths to enjoy a different banking experience, which provides real value to users and helps them manage their finances, in a simple and convenient manner. We are continuing to develop additional services and features which will make young people’s first banking experience more pleasant, smart and fun".
To check out our intro video, please visit https://youtu.be/69N-KquMahs