Citibank is making preparations to enter the field of virtual banking in Israel. “Globes” has learned that the bank has just recruited an Internet expert to its top ranks in Israel, who will serve as technology manager of Citibank in Israel. Nahum Frenkel, who has worked in Internet-related start-ups in recent years, has been appointed to the post.
Citibank plans to inaugurate its first branch in the country within several months. It plans to provide private customers in Israel with banking services over the Internet already at the early stages. Among other things, this will include opening saving and deposit accounts, foreign currency and securities transactions – services which most banks in Israel provide.
Israeli banks are anxious about losing private customers to foreign banks as a result of their entry into Internet banking.
The provision of services over the Internet will enable foreign banks, including Citibank, to deal with retail banking without necessitating the opening of many branches. According to the license Citibank received from the Bank of Israel, it is allowed to offer Internet banking services to customers in Israel, on condition that it complies with information security standards.
As first reported by “Globes”, Bank of America, the largest bank in the US, is about to open a representative office in Israel. Bank leaders will visit Israel for consultations, and are expected to formally announce their plan on Wednesday.
Published by Israel's Business Arena on 15 May, 2000