Israeli digital bank One Zero has introduced new measures that will allow customers to manage their bank accounts with virtually no commissions on forex and securities trading. This is one of the latest areas that has become a profitable cash cow for the banking system. According to One Zero estimates, banks generate commission income worth NIS 4 billion 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 One+ premium route without subscription fees. The path includes extended exemption from current account fees, exemption from credit allocation fees, exemption from credit card fees, foreign currency conversion fees on the card and foreign currency transfers in the account at 0%, and also includes 10 securities trading transactions every month.
Savings of up to 3,000 shekels annually
One Zero says the terms offered could save families between NIS 1,000 and NIS 3,000 per year depending on the amount of activity on their account. According to the bank, the bank’s customers can choose the One+ route and enjoy the above benefits provided that a net monthly salary of NIS 10,000 is transferred to the account or NIS 10,000 via bank transfers.
For new members opening an account this month, salary transfer/bank transfers as mentioned will only be required from January 2026, to give customers the opportunity to gradually transition their activity and experience the bank’s services. Experience with bank clients shows that it takes clients a period of several months to transfer a major activity and organize their activity with the previous bank.
One Zero added that the exemption from subscription fees will be in effect indefinitely as long as customers meet the conditions for salary transfer or 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 revenues of major banks are distributed such that about 19% of them come from current account fees, about 23% of revenues from securities fees, and about 22% of fees from credit cards (including foreign currency transfers). fees), and about 13% are from foreign currency transfers in the account. In other words, more than half of banks’ fee revenue comes not from current account fees, but from card fees, foreign exchange conversion fees, and securities trading fees, which will not be charged 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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