As part of the Banking Supervision Department’s measures to increase the transparency of financial information, the array of data published by the Department has been expanded to include the publication of data on household activity using online banking channels.  These include a variety of options for making banking transactions digitally, without needing to involve a teller:


Internet channels, including the bank’s website, mobile application, email, and SMS;

Landline and cellular phone channels including human response, interactive voice response, SMS, and fax;



The data array being published today, and every six months on a regular basis, includes information on households’ transactions[1] using direct channels, relative to transactions at bank branches, divided by type of service and customer age.  The information being published is based on the banks’ reports to the Bank of Israel[2], which are up-to-date as of the first half of 2022 (link).


In addition, the Banking Supervision Department is also publishing information on customers’ transactions using the various banking channels during 2021, divided by the branch’s locality.  This enables an analysis of the differences in customer behavior by the locality’s characteristics[3] (link).


Supervisor of Banks Yair Avidan spoke about this today at the Municipal Expo.  Click here for his remarks at the conference.


Supervisor of Banks Yair Avidan: “As part of the Banking Supervision Department’s measures to increase transparency, we are today publishing broad information regarding households’ banking activities using direct channels.  The Banking Supervision Department encourages the banks to make more services accessible through direct channels, with the aim of enabling customers to make banking transactions more conveniently and at less cost.  In addition, it would enable customers to vary and adjust services to the needs of various population segments, while increasing the view of the customer at the center and transferring power to the customer.  We are closely monitoring the data and activity in various segments in order to make sure that the needs of various populations groups are answered and provided for in a sufficient manner.”


Main findings

From 2019 through the first half of 2022, there has been an increase in the rate of transactions being executed using direct channels (Figure 1).  The increase has mainly occurred in the deposit or withdrawal of deposits and in taking out credit (Figure 2).

The data show that about 97 percent of households’ banking transactions up to age 25 are executed using direct channels.

Most customers up to age 70 prefer to make their banking transactions using the bank’s cellular application.

Ninety-three percent of the transactions of customers up to age 71 are executed using direct channels, and only about 7 percent are through bank tellers (Figure 3).

The locality-level data show that in more peripheral localities, more transactions are carried out at the bank branch or through ATMs than in the less peripheral localities.[4] (Figure 4)[5].

In branches located in localities in the non-Jewish sector, the percentage of use of ATMs is high, while the use of cellular applications is relatively low (Figure 5).

Segmented by socioeconomic standing[6], there is a visible difference in customers’ preference for using the various channels (Figure 6).


[1] “Transaction” includes any contact initiated by the customer/merchant to obtain banking services, except as defined in Reporting to the Banking Supervision Department Directive 869 on “Payment cards”; cash withdrawals in Israel using a payment card; obtaining information; receiving warnings; and obtaining a “authentication factor” as defined in Proper Conduct of Banking Business Directive 367, including in order to change details.

[2] In accordance with Reporting to the Banking Supervision Department Directive 842 “Reporting on Online Banking (Semiannual)”, for the five largest banks.

[3] This information is based on banks’ reports to the Banking Supervision Department pursuant to Directive 846 “Detailed Reporting on Branches (Annual)”.

[4] Peripherality and religion of the locality, and socioeconomic ranking, are taken from Central Bureau of Statistics data.

[5] It should be noted that the classification is according to the locality in which the branch is located, and not the locality in which the branch’s customers live.

[6] Rating scale: 1-2 indicates very low socioeconomic standing; 9–10 indicates high socioeconomic standing.