Participants in the Israeli financial system are identified using an identification code that is unique to each participant (currently known as a “bank code”), composed of two characters. The Bank of Israel announces the allocation of identification codes to two fintech firms that are in the process of connecting to the payments systems in Israel.
This step is consistent with the other measures advanced by the Bank of Israel to open access to nonbank participants and to advance competition in the payments market, such that fintech firms will be able to operate directly and independently in the supervised payment systems in Israel, while reducing their dependence on the banks. Together with a proper license from the relevant regulator, the identification code will enable fintech firms to be uniquely identified by other payment system participants, and will enable them to allocate payment account numbers to their customers.
Payment and Settlement Systems Department Director Oded Salomy said: “The new participants that are expected to join the payment systems will contribute to increased competition and reducing concentration in the financial market. They will develop advanced and innovative payment solutions, streamline business processes and services, and lower costs for consumers and merchants in Israel.”
The Bank of Israel has allocated identification code 92 to Okoora Trade Flow Ltd. and identification code 94 to Gama Management and Clearing Ltd.