Israeli Banks May Stop Sending Mail Notices Without Customer Consent
Translated & summarized from Calcalist by baba
Israeli banks may soon be permitted to switch customers to digital notifications instead of physical mail without explicit consent, according to a draft directive from the Bank of Israel. This change aims to align with the widespread adoption of digital banking channels, which now account for over 90% of transactions. However, customers aged 70 and over, and those inactive online, will be exempt from automatic transition. Customers can still opt for physical mail, and banks must monitor engagement with digital notices.
The story in 5 lines · by baba
- Israeli banks may stop sending physical mail notices to customers without explicit consent.
- A draft directive from the Bank of Israel allows banks to default to digital notifications.
- Customers aged 70 and over are exempt from automatic digital notification transitions.
- Banks must monitor customer engagement with digital notices and revert to mail if needed.
- The move reflects the significant increase in digital banking transactions in Israel.
Israeli banks may soon be able to stop sending physical mail notices to customers, even if those customers have not explicitly opted for digital communication. The Bank of Israel's Banking Supervision Department has released a draft directive that would allow banks to change the default method for sending notices from physical mail to digital delivery. While banks are not obligated to make this change, those that do will be able to cease sending paper notices to customers who are transitioned to digital delivery, subject to consumer protections.
Currently, a customer must actively enroll in a bank's digital services to receive notices digitally. This means even customers who regularly use their bank's app but haven't requested digital notices still receive them by mail. The proposed directive would eliminate this requirement, reflecting the significant increase in digital channel usage. Bank of Israel data shows that 90% of banking operations were conducted through digital channels like websites and apps in 2025, up from 66% in 2019, with approximately 92% of all banking transactions now digital.
This shift is expected to enable customers to receive financial information faster and save banks costs associated with printing and postage, while also reducing paper consumption. However, certain customer groups will be exempt from automatic digital transition. According to the draft, banks cannot unilaterally switch customers aged 70 and above, or those who haven't used the bank's online services in the 12 months prior, to digital mail. Banks will also need to assess if other customer groups are unsuitable for this transition. These exemptions do not prevent customers from choosing digital delivery themselves.
Customers transitioned to digital mail will retain the right to receive physical notices. Banks will be required to inform them of the change through their previous communication channels and clarify that they can opt back to physical mail at any time via bank services or branches. For joint accounts, each account holder can independently choose their preferred notification method. The draft also mandates that banks monitor customer engagement with digital notices. If a customer shows no engagement with digital notices for six months, the bank must send a notification via both digital and physical means. If the customer remains disengaged for an additional six months and the bank cannot establish contact, the bank will be required to revert to sending notices by physical mail.