Israel Delays Digital Mail Transition for Bank Customers

The Supervisor of Banks, Daniel Hachueli, announced on Friday that the public comment period for a draft directive on digital mail for bank customers has been extended until November 30, 2026. The directive will not take effect before further discussion in the Knesset's Economy Committee. This decision came in response to a letter from five Members of Knesset from both the coalition and opposition, who had requested a freeze on the process of moving bank customers from printed mail to digital correspondence.

Hachueli stated that technological advancements and changing consumer preferences have led to 92% of banking operations being conducted through direct channels. He explained that the move to digital mail is intended to be transparent, convenient, and environmentally friendly, making financial information more accessible. He emphasized that the Banking Supervision Department is ensuring that services for non-digital customers will not be negatively impacted. The proposed directive would not apply to customers aged 70 and above, or those who have not used the bank's website or app in the preceding year. The transition would only occur after customers are notified and the characteristics of digital mail are explained, with ongoing review of the change. Customers would be able to revert to physical mail, and the change would not proceed without customer knowledge.

The Knesset members, including Gilad Kariv, Efrat Rayten, Almog Cohen, Ahmad Tibi, and Yitzhak Pindrus, had written to the Governor of the Bank of Israel, Prof. Amir Yaron, and the Supervisor of Banks. They argued that publishing the hearing document on November 3, during a transition period and before the new Economy Committee was formed, violated a commitment to the previous committee not to advance the issue without reaching agreements. They described the timing as a "hijacking" that undermines the Knesset's standing.

Previously, in January, the Economy Committee had agreed that a team of MKs led by Uri Maklev would examine the issue with the Bank of Israel. Maklev's team concluded in May that customers should not be moved to digital mail without explicit consent, and printed mail should remain the default. Following these findings, David Biton, then-chair of the committee, wrote to the Governor in July stating that the proposed change was not appropriate at that time and that the Bank of Israel had assured him no action would be taken without agreement.

The MKs expressed concern that the current push for digital mail, despite these discussions, undermines parliamentary oversight and trust between the Knesset and the regulator. They warned of "financial blindness" for customers with low digital literacy, such as the elderly and new immigrants, who might miss important notifications about account irregularities or unexpected charges. They stressed that for these populations, physical mail is a basic and essential service, not a privilege, and that the Supervisor of Banks' independence should not be used to unilaterally harm consumers.