Israeli digital bank One Zero has introduced new measures that will allow customers to manage their bank accounts almost without commissions for foreign currency and securities trading. This is one of the latest areas to become a lucrative cash cow for the banking system. According to One Zero estimates, banks generate NIS 4 billion in commission income annually from securities and foreign exchange trading.
One Zero already offers a bank account that is exempt from overdraft fees and credit card fees. Now, the digital bank will offer the premium One + track without a subscription fee. The track includes an extended exemption from current account fees, exemption from credit allocation fees, exemption from credit card fees, 0% foreign exchange conversion fees on the card and foreign exchange transfers in the account, and 10 securities trading transactions are included each month.
Savings of up to NIS 3,000 annually
One Zero says that the terms being offered can save households between NIS 1,000 and NIS 3,000 annually depending on the amount of activity in their account. According to the bank customers can choose the One+ track and enjoy the aforementioned benefits providing they transfer a monthly net salary of NIS 10,000 to the account or NIS 10,000 in bank transfers.
For new members that open an account this month, the salary transfer/bank transfers as mentioned will only be required from January 2026, to give customers the opportunity to gradually transfer their activity and experience the bank's services. Experience with the bank's customers shows that it takes customers a period of several months to transfer a main activity and regulate their activity with the previous bank.
One Zero added that the exemption from subscription fees will be valid indefinitely as long as customers meet the conditions for salary transfer or the required monthly transfers. The digital bank analyzed the income of the largest banks in the economy from fees to households only. The analysis revealed that the major banks' revenues are distributed so that about 19% of them come from current account fees, about 23% of the revenues are from securities fees, about 22% of the fees are from credit cards (including foreign exchange conversion fees), and about 13% are from foreign exchange conversions in the account. In other words, over half of the banks' revenues from fees do not come from current account fees, but from card fees, foreign exchange conversion fees, and securities trading, which will not be collected in the new package offered by One Zero (One +).
Published by Globes, Israel business news – en.globes.co.il – on December 17, 2024
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