“The real challenge lies not in the technology, but in the people”: Rakefet Russak-Aminoach on AI, innovation, and Israeli resilience
The former Bank Leumi CEO and Team8 managing partner told Liat Aaronson at Tech1 why mindset, not machines, will define the future of banking, startups, and Israeli innovation.
After a transformative decade at Bank Leumi, where she spearheaded one of the most ambitious digital overhauls in Israeli banking, Rakefet Russak-Aminoach, now a managing partner at Team8, is watching the rise of artificial intelligence in financial services with a mix of admiration and caution. The technology may be evolving at an unprecedented pace, she says, but real transformation still hinges on people. And getting people to change? That, she knows from experience, takes time.
“I remember the day I visited the branches and saw many young customers sitting in line, staring at their phones,” she said in a conversation with Liat Aaronson, co-founder and Managing Director of HLV, at the Tech1 Conference in Eilat. “That’s when I had an epiphany: why should anyone need to come to the branch instead of doing everything digitally? It wasn’t intuitive at the time, and I had to convince everyone that this was the future.”
When asked how she would approach AI if she were leading a bank today, Russak-Aminoach was direct. “With artificial intelligence, you can transform the entire traditional banking system, but the challenges that come with this transformation will be even greater,” she said. “The real challenge lies not in the technology, but in the people. The pace of change in AI is extremely fast, and even during my time, it took me seven years to get everyone - from customers to employees - used to digital banking. Adapting to this new world won’t be easy.”
As a venture investor and board member to startups, she often finds herself advising founders facing steep early-stage challenges. “Entrepreneurship is one of the most complex journeys. You have to be strong and resilient,” she said. “Every friend I know who has had an amazing career has faced enormous challenges, including myself. I explain to entrepreneurs that there’s no way to avoid it: you have to be brave and optimistic.”
Yet despite the obstacles, both geopolitical and financial, Israeli innovation continues to punch above its weight. “Just look at my partners at Team8,” she said. “Just last week, Ronen Assia and his brother Yoni took eToro public on Wall Street, and a month ago my other partner, Alon Huri, sold Next Insurance to Munich Re. This is a source of Israeli pride—not just for fintech or high-tech, but for the country.”
Russak-Aminoach attributes this exceptionalism to a distinctly Israeli blend of mental toughness and irreverent ingenuity. “We live in a complex environment,” she told Aaronson. “Growing up amid conflict and serving in the IDF forces you to make difficult decisions. It makes Israelis mentally stronger, more resilient, and more daring. There’s also a natural skepticism and audacity - chutzpah. That combination is what makes Israeli high-tech exceptional.”
