The Banking Supervision Department announces a process to lower fees for small and micro businesses

On Thursday, Bank customers that are small businesses were automatically included in the permanent low-cost current account fee track that is adapted for them and will save them up to hundreds of shekels per year.

 

Supervisor of Banks Dr. Hedva Ber said, "On Thursday, a further stage in the Banking Supervision Department's policy to make it easier for the small business segment and to lower the cost of their banking services went into effect.  In accordance with the Department's guidelines, small businesses and authorized businesses were included, in an initiated step by the Bank, to the basic or expanded tracks service in accordance with their account activity.  In our assessment, this step is expected to save small businesses up to hundreds of shekels per year."

 

Beginning on August 1, 2019, and each year on March 1, the banks will conduct feasibility tests for small businesses (a business with annual activity turnover of up to NIS 5 million) and for authorized businesses, and will include them in the track that is most beneficial for them.  Those customers will receive written notice and an SMS regarding the inclusion of their current account in the tracks service.

 

The expanded fees track is appropriate for most small businesses and authorized businesses.  This track includes up to 50 direct channel transactions (those conducted through the bank's website, application, automatic machines, digital station at the branch, and so on), and up to 10 teller transactions per month, with a fixed monthly charge of between NIS 20 and NIS 30 (Figure).

 

For instance, a typical small business that conducts 38 direct channel transactions per month (25 cash deposits, 4 credits from a settlement company, 4 check deposits, and 5 payments to suppliers) paid an average of NIS 64[1] per month before joining the expanded track.  In contrast, it would pay just NIS 24 in the expanded track program, thereby saving about NIS 480 per year due to the Banking Supervision Department's directive.


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[1] As part the average price list of the five largest banks for the direct channel transaction fee and the expanded track service.