Bank of Israel Proposes Shifting Default Bank Notices to Digital Channels

The Bank of Israel has published a draft directive proposing a major shift in how banks communicate with their customers. Under the new proposal, banks will be permitted to automatically transition clients to digital-only notifications—such as in-app messages, personal website portals, and text messages—without requiring explicit prior consent. Currently, physical mail remains the default option unless a customer actively requests digital delivery.

While this change aims to streamline banking communications, critics and consumer advocacy clinics warn that it poses significant risks for vulnerable populations. Elderly citizens, new immigrants, and individuals who rely on basic mobile phones or rarely check their banking apps risk missing critical alerts. These notifications often include urgent warnings about overdraft limits, blocked accounts, mortgage rate adjustments, or imminent legal proceedings.

Legal experts note that a similar proposal was rejected in 2020 by the Ministry of Justice, which ruled that shifting default communication methods without explicit consent undermines genuine consumer choice. Furthermore, recent discussions in the Knesset's Economics Committee highlighted ongoing opposition from lawmakers, who argue that printed mail must remain the default unless the customer opts otherwise.

The proposed directive includes certain safeguards, such as exempting clients aged 70 and older or those who have not used digital platforms in the preceding year. However, consumer advocates point out notable loopholes, including the fact that age eligibility is checked only once at the time of transition. Additionally, security experts warn that increasing the volume of official text messages containing active links could exacerbate the risk of phishing scams, making it harder for customers to distinguish between legitimate bank alerts and fraudulent messages.