Bank of Israel Proposes Digital-First Bank Mail Reform, Sparking Print Industry Backlash
The Bank of Israel published a draft directive shifting bank communication defaults to digital channels, sparking intense pushback from Israel Post and Beeri Print over potential heavy losses.
The Bank of Israel has released a public draft regarding the improvement of messaging services for banking system customers, setting off a fierce confrontation with postal distribution companies and printing houses. The proposed reform shifts the default option for bank communications from physical mail to digital channels, meaning customers will automatically receive updates digitally unless they actively opt out.
Supervisor of Banks Daniel Hahiashvili stated that digital messaging addresses the growing demand for fast, convenient, and efficient financial communication while ensuring strict information security. The Banking Supervision department emphasized it will closely monitor implementation to protect all customer segments, including exempting vulnerable populations and preserving the right to choose physical mail.
The initiative caught Israel Post and Beeri Print by surprise, as industry leaders warned of severe consequences. Beeri Print, heavily reliant on banks as its primary clients, faces existential threats, while Israel Post and delivery services anticipate a sharp drop in business mail volumes. Critics and lawmakers previously raised concerns over the impact on senior citizens, minorities, and new immigrants who rely on traditional notices.
Despite previous parliamentary pushback and a letter from Knesset Economic Committee Chairman David Bitan urging caution, the central bank proceeded with the public draft. The Bank of Israel clarified that the transition will exempt customers aged 70 and above, those preferring physical mail, and individuals inactive in digital channels. Industry stakeholders intend to mount a strong defense during the public consultation period.
