RealTime IT News

Online Bank Transactions to Begin in Israel

The Supervisor of Banks in Israel, Dr. Yitzhak Tal, has announced that he will allow banks to expand the kinds of services they provide via the Internet, as well as allow customers to carry out banking transactions on the Internet.

In 1997, Tal allowed the banks to provide account information via the Internet and today all the major Israeli banks provide bank account information via their Web sites. Customers requesting this service are provided with a user name and password. To date, 55,000 customers are getting account information via the Internet from Israeli banks.

Because the former service has been so successful, Tal has now decided to allow customers to perform other banking services through the Internet, such as buying and selling securities, transfer of funds from an open to a short-term closed account, opening of savings accounts and more. At this time however, banks can not allow customers to transfer funds from one account to another or to pay bills through the Internet, as there are still security risks involved in these activities.

Tal said that expanding the kinds of services provided via the Net will also increase the number of customers who will sign up for Internet services, thus making bank services more efficient for both banks and their customers.

This approval of services is not automatic, and every bank will have to present their systems for examination to the supervisor. The security of their systems will be examined, and only when the bank receives all the approvals will they be able to begin to offer their customers to make banking transactions via the Internet. The banks themselves are in preparedness and are only waiting for the approval of the supervisor.