This is according to a report by the Supervisor of Banks for the first half of 2020, on household fees • The monthly cost of running a current account is NIS 11.6
Overseas transactions have dropped, ticket fees have risen
Photo:
Joshua Joseph
In the last 11 and a half years, there has been a cumulative 40% decrease in banks 'commissions to households, as a percentage of banks' assets.
This emerges from the semi-annual report of the Supervisor of Banks at the Bank of Israel on "Common banking services for households in the first half of 2020".
The Bank of Israel attributes the decrease in fees to the Supervisor of Banks' operations.
"The decline in the first half of 2020 is largely affected by the corona virus crisis that afflicted the economy during this period, and does not reflect a normal course of business," the report said.
During this period, there was an increase mainly in income from securities commissions, since with the outbreak of the crisis, the public redeemed tens of billions of shekels, which led to a high commission charge.
On the other hand, this increase in the volume of activity and fees was offset by a decrease in current account management fees and credit treatment fees, against the background of a decrease in economic activity due to the crisis, which was also at its peak. Overall, bank income from commissions remained unchanged. For the corresponding period in the previous year.
At the same time, alongside the total assets of the banking system, there was a significant increase of about 11% in annual terms, which explains the decrease in the ratio between commission income and total assets during this period.
In other words, the commissions, calculated in relation to the banks' assets, were not reduced.
The cost of managing current accounts and holding debit cards for current accounts for households and private banking amounted to approximately NIS 24.5 per month.
However, a trend of years of commission reductions has reached a cumulative rate of 24% in the last nine and a half years.
1.6 tickets to the account
The average monthly cost of managing current accounts and holding credit cards in an account consists of the costs of managing a bank account (current accounts and receiving information) and the costs of holding debit cards.
The average monthly cost of running a current account and receiving information amounted to NIS 11.6. In the first half of 2020, the downward trend in account management costs intensified due to the crisis and the decline in economic activity. This cost decreased by 6% during 2020. Services included in this cost: Operations Basic banking, such as depositing and withdrawing cash, banking transfers, check transactions, debit authorizations, receiving information and the like.
The monthly cost of holding and using credit cards averaged NIS 12.9 per month per account.
This cost mainly includes the card fee as well as additional costs for foreign currency withdrawals abroad, transactions abroad and more. During the reporting period, there was an 11% decrease in the cost of holding and using credit cards, due to a decrease in transaction fees and foreign currency withdrawals. There has been an increase in the ticket fee charged - the average ticket fee amounted to NIS 7.1 per ticket per month, compared to NIS 6.5 per ticket in 2019.
The increase is mainly due to an increase in the total revenue from ICC card fees.
The average monthly cost of the card fees charged to the account is about NIS 11.5, compared to NIS 10.7 in 2019 - an increase resulting from the increase in the ticket fees.
The amount of tickets held by customers in a single account, compared to 2019, remains unchanged and stands at 1.63 tickets per account.
The report also shows that the cost of performing a banking transaction through a direct channel is on average about 70% lower than the cost of performing it through a clerk.
Customers who want to lower the fees they pay can switch to the advanced technological means offered by direct banking.
The use of these means allows for high availability, maximum convenience in receiving the services and significantly reduced cost.
Regular monthly
Since 2014, banks have been obliged to offer their customers the route service - basic and extended - in the current account. This service offers a payment of a fixed monthly amount for performing a pre-defined number of operations - operation by a clerk and direct channel operation. "Extended Plus". Over the years, and as a result of the supervisory operations and the banking system, the number of accounts attached to the track service has steadily increased. In the first half of 2020, about 79,000 accounts joined the track service, most of them accounts of households. , Because the "Securities Deposit Management Fee" fee - the one that is charged as a percentage of the client's portfolio value for holding a securities account, is a commission that has a high variance between banks, also as a function of portfolio value. Therefore, it is important for clients to compare You are the best and cheapest service provider.