Israel releases draft directive on open banking

While Israel has strong banking system, it has been a late mover in initiating open banking:

Israel is in the process of implementing open banking. The country’s central bank, the Bank of Israel, has recently released a draft of the Proper Conduct of Banking Business Directive on the implementation of open banking standards and the draft contains stipulations banks and credit institutions should follow like enabling licensed and supervised third parties to get access to customers’ bank accounts, of course with the customers’ explicit consent, in order to retrieve information or execute transactions. Israel had about 2 years ago enacted legislation, titled ‘the Increasing Competition and Reducing Concentration in the Banking Market Law and this law too requires financial institutions to enable service providers to have access to customers’ financial information.

SETTING STANDARDS