Banks Examiner Zeev Abeles announced today (Tuesday) that he had decided to permit commercial banks to offer their customers bank information services through the Internet.
Abeles said he had reached this decision after studying the issue of security of bank activity on the Internet, following consultation with an international company specialising in the field. Abeles stressed that Banks Control had formulated strict directives, intended to guard customers’ interests and information confidentiality.
Initially, bank customers will be able to obtain, via the Internet, only information on the state of their accounts. Expansion of the banking services to include, for example, instructions for action, will be permitted gradually by the Bank of Israel, based on lessons learned and conclusions derived from the operation of information services in a restricted format.
Also, in order to assure confidentiality of information, banks will be permitted to offer the new service only to customers known to them for a long time. The initial contractual engagement between customer and bank will not be able to be effected via the Internet. At the same time, the banks will also be required to explain to their customers the security arrangements effected by them, for the protection of the information being communicated via the Internet.
Six banks, including the leading banks, already applied, several months ago, to the Bank of Israel, to be permitted to provide customers with banking services via the Internet. Meanwhile, the major banks have opened up Internet sites, where they supply general financial-economic information.
For example, on the "Poalim on the Internet" site of Bank Hapoalim, a demo is already in existence, enabling a potential customers to see how he will be able to obtain all banking services via the Internet. The direct banking department manager in Bank Hapoalim, Idit Luski, told "Globes", that the bank was prepared to provide immediate services, once official permission comes through. Other banks also noted that they are ready to provide Internet services.