Starting Wednesday, Israelis can switch banks more easily. A new system enables bank customers to switch from one bank to another online quickly and at no cost.
Under the new “Follow Me” service, bank accounts can be switched within seven days, and any charges or deposits that reach the old account will be automatically transferred to the new account within two years of the switch. Under the current situation, any debit or credit for the closed account is refunded, and it is up to the customer to arrange the transaction.
The central bank said users can request transfers between banks through banks’ websites and bank branches. Accounts with complex issues or legal holdings against them may not qualify for the program.
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View of the Bank Hapolim branch in central Jerusalem on December 11, 2019(Credit: Olivier Fitoussi/Flash90)
“Completing this move is another step toward an open, transparent and more competitive financial system that we are promoting on multiple fronts, and that allows customers to easily and seamlessly access the various financial services providers they use. will enable you to choose easily.” Bank of Israel Governor Prof. Amir Yaron said. “We will continue to use the digital age available to us to advance processes and reduce barriers to the financial system and payment systems.”
Finance Minister Avigdor Lieberman said, “The rapid transfer from one bank to another is an important step and an integral part of the strategy to increase competitiveness that we have adopted across various industries.” “We will continue to work to reduce bureaucracy in key focal points. Simplify our daily conduct.”
The new system will enable customers to easily transfer credit balances in shekels and foreign currency, debit balances in shekels and foreign currency, authorized debits of current accounts, cheques, securities (Israeli and foreign), credit card activities and standing orders . . With regard to loans and mortgages as well as savings accounts, special arrangements were made according to which banks would work with their customers on each case on an individual basis.