Let's start with the good news, the establishment of Amnon Shashua's One Zero Digital Bank will help increase competition between banks, and thus may encourage them to lower the interest rates and fees they charge customers.
Last year, banks recorded huge profits thanks to the mortgage frenzy and the recovery of the economy from the corona crisis, which allowed them to reduce the security cushions recorded as expenses for credit losses.
The well-publicized campaign launched by Discount Bank is just the first swallow of the competition, which is finally starting to wake up.
The first digital bank is supposed to shake the big banks to compete against each other for every customer.
This is an important event, especially in light of the fact that for 43 years no new bank has been established here, but there are still quite a few unresolved questions and issues.
For example, where will it be possible to deposit cash if the bank has no branches?
The bank itself did not know how to answer this question and answered the "Israel Today" question: "We are in the process of finding a solution for depositing cash in a wide spread."
Beyond that, will it be possible to meet face to face with the representative of the first digital bank?
Probably not.
For many, this is a major disadvantage, as recently there have been more and more voices dissatisfied with the massive closure of bank branches, and many are still opening a bank account close to home - indicating that a visit to the branch is still perceived as important.
Corona has accelerated the digitization process in banking, and the digital bank has entered a period when most large banks are already offering various digital services, so it can be said that the competitive advantage of One Zero has diminished, and the momentum has been missed in two years.
Finally, the target audience targeted by the digital bank is not the underprivileged strata of the older population, as account management requires internet access and digital computer operation skills.
It can also be assumed that many of them have not heard at all about its launch.
Bottom line, the success of the new bank will be measured in the outcome test, and if it offers sufficiently attractive interest rates and commissions that will cause even the big banks to lower interest rates - all types of consumers will benefit.
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