Supervisor of Banks Dr. Hedva Ber spoke at the opening of the 2019 "Year End – Taxes, Accounting, and Beyond" conference hosted by the Deloitte accounting and consulting firm in Kfar Sava.  In her speech, the Supervisor reviewed the many changes taking place in the banking industry both in Israel and abroad, the steps taken by the Bank of Israel's Banking Supervision Department to promote innovation and enhance competition in Israel, and presented a forecast of future developments in the industry.  Her presentation (in Hebrew) is attached.​


In her remarks, the Supervisor noted that there are already signs of change in banking that are benefiting the public, and that will continue to bear fruit.  She emphasized the importance of the banking and financial system continuing to adapt to the changing environment, with the understanding that an organization that does not adapt itself to the changes that are taking place will become irrelevant.


In her summation, the Supervisor looked forward to the future financial world.  She noted her assessment that large technology companies—the "big-techs"—will enter financial areas and form cooperative ventures with the "traditional" banks.  The market share of the banks is expected to shrink, as nonbank financial entities enter the market.  However, in her assessment, the banks will continue to exist.  Rather than disappearing, they will continue to adjust their structures and will become "leaner" operationally, and will offer a wider variety of services.  In parallel, the payments market in Israel will undergo a significant "disruption", as global participants enter the Israeli market.  These changes will be accompanied by risks that must be managed.  In the future financial-technological world, her assessment is that we can expect more hacks of customer information and more cyber events.  Overall, the changes in the financial world are expected to benefit the customers, who will enjoy greater competition and more adapted and convenient financial services.