The answer for this question is very simple: In spite of what experts may tell you, there is nothing new and banks are doing what they’ve doing since they were created: Making money on your money.
A bank is not based on philanthropy but on profitability – the more the better.
This is why it is not wise to look for a bank that gives you a “better service”, has better clerks, has a clerk that speaks English, etc. In this short article I will try to explain why you should look for a bank that has a branch near you and nothing else.
Banks in Israel:
In Israel there are 5 types of banks: One Central Bank (created and regulated by law as in other countries), Commercial banks (Mischariim), Mortgage (Mashkantaot), Investment (Hashkaot), Development banks and aid (Pituach ve Siua).
Besides those, we have foreign banks with permission to do business (with branches) in Israel: BNP Paribas Israel, SBI State bank of India, Citibank N.A and HSBC Bank plc.
We are talking around 23 different banks with thousands of branches around the country. 16 are commercial and mortgage banks. The list in English can be found here: http://www.boi.org.il/en/bankingsupervision/banksandbranchlocations/pages/israelibanks.aspx
Rule Number 1:
Don’t be fuelled by terms such as: No fees (“Amalot” in Hebrew), free this or that, no interest, etc. The day a bank will give anything for free to its clients will be the day they will be signing their own death sentence. As we already know, a bank is created for one purpose only: Make money using your money and nothing else.
Rule Number 2:
Don’t be tempted to believe one bank can offer something no other bank can. It is possible to get the same conditions in any bank. They may vary a little, they will have different names but in the end as a whole, banks will offer the same. In the State of Israel any competition is only an illusion – we have pretty much a non-competitive banking system (I am not using the forbidden word “cartel”…).
Rule Number 3:
If you chose this or that bank because the clerk speaks English, good for you but remember that no one will ever promise you to keep that specific clerk working at that position to please you. He may be removed at any time and replaced by someone that doesn’t speak English.
It is a shame that we, being considered a modern country and not belonging to the third world, have so much indifference towards the importance of the English language. We give much more emphasis to Arabic than to English. Arabic is an official language but English is not. For a country that absorbs so many Anglo newcomers we are doing a terrible job.
Rule Number 4:
Benefits and special conditions given to you, will be taken away without you knowing it. The system is complicated even for Israelis with total command of the language so for you it will be a nightmare trying to navigate so many pages they hand to you with that great smile saying: “Please sign here”…
The State of Israel does not support, or at least doesn’t see, full transparency as a crucial issue. Not in the government nor in any other area, including banking.
Rule Number 5:
You are in Israel, therefore the rules you’ve known from abroad are not applicable here. The service you are used to receiving will be different and the language used will be Hebrew and no other. Yes, I am aware many documents are translated and given to you given in English.
In court, only a Hebrew version will be accepted as a legal binding document, therefore most important documents will be in Hebrew only.
A word of wisdom:
You can’t beat them, therefore at least try to join them. Join the Hebrew speaking crowd. You can learn the basics of the “banking language”. I would say no more than 40 words will enable you to navigate all the basic banking business.
