How Innovative Israeli Fintechs are Boosting Financial Literacy Among Investors

As one of the world’s most financially literate countries, it appears that Israeli fintech startups are intent on spreading the knowledge and providing access to financial tools in a way that promotes inclusivity on a global scale. 

With 64% of Israeli women demonstrating financial literacy alongside 72% of men, the gender gap of 8% is representative of the most resourceful Organization for Economic Co-operation and Development (OECD) member countries and a vestige of the nation’s financial inclusivity. 

Because the OECD represents a group of countries with the world’s highest incomes and most developed economies, Israel’s strong literacy levels are a sign of its burgeoning startup ecosystem, which has provided seamless access to global markets and investment tools to millions of investors domestically and overseas. 

By definition, financial literacy refers to learning how to manage money so that you can save, live within your means, and reach your financial goals. Additionally, financial literacy isn’t always a key component of school curriculums around the world, so Israeli fintech is making waves in accommodating the need for financial education at scale. 

Unlocking Israel’s Fintech Potential

As the startup nation, Israel already has a strong pedigree for fintech, and recent innovations in artificial intelligence and generative AI are already acknowledged to be capable of driving further growth throughout the sector in the coming years. 

The lure of Israel’s sprawling fintech ecosystem is such that significant international investment is flowing into the nation’s brightest startups. 

In November 2024, Israeli fintech firm Capitolis announced a $20 million strategic investment from four leading global banks, including Citi, State Street, Morgan Stanley, and UBS. The investment saw each bank contribute $5 million, joining existing investors like Andreessen Horowitz, Index Ventures, Sequoia Capital, S Capital, Spark Capital, SVB Capital, Canapi Ventures, 9Yards Capital, Standard Chartered, and J.P. Morgan.

Capitolis is committed to removing barriers to investing for institutional clients and investors through a collaborative platform for capital. 

Israel’s burgeoning fintech landscape has long had an emphasis on financial inclusivity and literacy. Back in 2019, Tel-Aviv-headquartered Bank Leumi launched its own mobile-based challenger bank, Pepper, as an investment app that caters to young people and seeks to introduce them to the world of fractional shares. 

The app works by setting up an easy-to-follow fees and commissions structure, based on uniform quarterly management fees and minimum investment amounts. It then allows investors to buy and sell shares in stocks without having to purchase the entire stock itself, opening the door to investing no matter the wealth of the user. 

Pepper CEO Michal Kissos Hertzog has claimed that the app could serve as a tool for financial education and empowerment of the younger generation as a result of its simplified and inclusive structure. 

Israeli fintech also appears to be making waves in breaking down the barriers to alternative investment strategies like cryptocurrency. January 2025 saw startup BitStock, a platform that specializes in crypto investing through its proprietary Ten Best Coins (TBC) index, raise an additional $400,000 to bring its total investment to $1 million. 

Likewise, OurCrowd, with offices in Tel-Aviv and Jerusalem, stands as one of Israel’s most exciting fintechs, and opens the door to investing in emerging and startup companies where users can build bespoke portfolios and help bright new endeavors to manage successful exits. 

Israel’s Push for Financial Literacy

Israel has also been consciously pushing to improve global financial literacy with a series of initiatives. 

March 2025 saw Israel and India unite to host a research symposium in New Delhi. The event, which was organized in partnership with the Israeli embassy, Bennett University, and the FICCI Ladies Organization (FLO), sought to research key polemics surrounding financial inclusivity and barriers to adoption. 

Factors like technology, policy and advancing economic inclusion, and the ability of women and young people to access key financial tools were high on the agenda, and we’re likely to see the findings shape the strategies of some of Israel’s most innovative fintechs in the future. 

The thirst for financial literacy is part of Israel’s cultural heritage, and it can be observed in the rise in popularity of social media figures like Micha Stocks, who has amassed a following of 80,000 subscribers by sharing investment advice and financial management tips to Israelis. 

Building Literacy and Inclusivity

Israel is consciously building a more financially literate and inclusive infrastructure that can help to benefit access to key economic tools for individuals around the world. 

With clear evidence that the startup nation’s brightest fintechs have long been aware of the potential of financial education, we’re likely to see a more concerted effort to attract users to investment tools in the future, and research symposiums like the one hosted in New Delhi is just the beginning of Israel’s growing role in promoting a more welcoming landscape for investors. 

The startup nation has long been at the forefront of fintech innovation, and its contribution to a more literate and inclusive financial playing field may be one of its most rewarding yet.