Sources inform “Globes” that Israel Discount Bank (TASE: DSCT) is voluntarily canceling its per transaction fees for hundreds of thousands of accounts owned by private customers and households. The cancellation will become effective soon, after the Bank of Israel gives final approval.
Discount Bank general manager Giora Ofer initiated the measure, with the approval of chairman Arie Mientkavich. At the end of last week, Ofer reported the measure to Supervisor of Bank Yoav Lehman, who responded positively.
A fixed, uniform account management fee will replace the NIS 1.21 per transaction fee. “The customer will be able to conduct all the transactions he wishes, at a reasonable cost,” Ofer told “Globes”. Initially, the fee will amount to less than billing separately for each transaction, but we hope the measure will pay off in marketing.”
Ofer and Lehman will meet this week to agree on solutions for a number of technical issues resulting from the Discount Bank’s new strategy. Ofer said his impression was that Lehman wished to promote the measure, which would be put into effect two weeks after approval is granted.
”It’s still all new and fresh,” said Ofer, who was surprised by the leak of the confidential information before the bank had completed its technical preparations for carrying out the change.
Discount Bank’s innovation follows Bank Hapoalim’s (LSE: BKHD; TASE: POLI) decision to increase its per transaction fee, which drew criticism from the public and the Knesset. Knesset Economics Committee chairman Shalom Simhon (Labor) initiated a survey showing that the banks’ profit margin on their fees was 84%, among the highest in the world. Published by Globes [online] - www.globes.co.il - on March 16, 2004