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Open Banking Reform Approved by the Economics Committee - Walla! Of money

2021-10-21T11:40:51.727Z

Which finance and fintech companies will receive approval to compete with banks? The one who will decide on the issue is the Securities Authority - according to the reform approved by the Knesset's Economics Committee



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The open banking reform was approved by the Economics Committee

The 'Open Banking' reform was approved by the Knesset's Economics Committee for a second and third reading.

The Securities Authority will lead the reform and grant the licenses to entities that will offer the services to the public.

Chairman of the Authority: "The public will have better control, a bargaining position and significant value, which will help it manage the money"

Tags

  • reform

  • Economic Committee

  • banking

  • Fintech

  • ISA

Roast Greenberg

Thursday, 21 October 2021, 14:22 Updated: 14:32

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Competition for our pocket is also entering the banking sector; The Knesset's Economics Committee today approved for second and third reading the Financial Information Services (Open Banking) Bill, which aims to make it easier for citizens to move their bank accounts and receive financial services from competing entities.



The Securities Authority will be the one to lead the reform, and will grant the licenses to the financial entities that will compete with the banks and offer the general public various financial services.



Anat Guetta, chair of the Securities Authority

, commented on the approval of the Financial Information Services Bill and said that "we are embarking on a new path that will give the Israeli public new options to manage their money digitally and efficiently, tailored to the individual needs of each service consumer.



The Securities Authority has been working for the past two years to lead the reform, which will allow fintech companies to offer diverse and competitive services to the public, which may reduce the cost of financial services it currently consumes such as current interest rates, credit terms, capital market activity and more.



I believe that the reform will contribute to the public gaining better control, a bargaining position and significant value that will help it manage its money better. "

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Anat Guetta, Chairman of the Securities Authority, who will grant the licenses to entities that will compete with the banks (Photo: Knesset Spokeswoman)

The reform is expected to facilitate the public to compare the costs of financial services such as current account fees, loans and credit cards, which Israeli household spends about 9,600 per year on average. Implementation of the reform will be from the middle of 2022.



Finance Committee Chairman MK Michael Bitton, said: "The banking industry in Israel suffers from closures, a shortage of players and stagnation, a lack of customer fluctuations and also a lack of business fluctuations. There are opportunities in the entry of the digital bank and Ofek Bank, which are supposed to go into action and make an impact, alongside Israeli fintech companies.



This move by the Open Banking Act joins the mobility reform, which allows for click-through within a week. All reforms will actually examine their outcome. Will there be fintech? Will the new banks be established and will there be a change? The committee will examine everyone, the Ministry of Finance and the Bank of Israel, the capital authorities and securities, and will examine whether we have achieved the desired result. "



As part of the process and ensuring port reform underway, along with an examination of its success, initiated by MK Concrete adding a clause to the bill, which the Minister of Finance will be responsible for reporting on the progress of the issue to the Economics Committee.



Section will be in the form of a temporary period of 5 years, and the report of the Minister of Finance will be On an annual basis, when the first report will be required about a year after the reform enters into force and will deal with preparations for it.

Michael Bitton, Chairman of the Economics Committee (Photo: Reuven Castro)

As part of the process and ensuring port reform underway, along with an examination of its success, initiated by MK Concrete adding a clause to the bill, which the Minister of Finance will be responsible for reporting on the progress of the issue to the Economics Committee.



Section will be in the form of a temporary period of 5 years, and the report of the Minister of Finance will be On an annual basis, when the first report will be required about a year after the reform enters into force and will deal with preparations for it.

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Source: walla

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