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The Harsh Truth About Israeli Banking: A System Stuck in the Past
When it comes to banking, Israel is a global leader in innovation — except in its own financial sector. While the world races ahead with streamlined, customer-centric services, Israeli banking remains frustratingly outdated. Here’s why:
1. Sky-High Fees
Israeli banks are notorious for charging excessive fees on everything from basic account management to international transfers. Compared to countries offering low-cost or even fee-free services, Israeli banking feels like a relic of a bygone era.
2. Limited Competition
The banking sector in Israel is dominated by a small number of major players, creating an oligopoly. This stifles innovation and keeps customers from benefiting from competitive rates and services that are commonplace elsewhere.
3. Outdated Technology
While fintech startups in Israel lead the world, the banks themselves lag behind. Basic online banking services are clunky, mobile apps often lack advanced functionality, and integration with global payment platforms like PayPal or Revolut is cumbersome.
