Use of online banking up sharply 
 
The number of bank branches and ATM points is down. 
 
by Zeev Klein    
Globes
September 5, 2005
 
The use of online banking and credit cards rose sharply 
during 2004, while number of bank branches and ATM points 
fell and their use by the public declined, according to the 
Bank of Israel Banking Supervision Department report for 2004. 
The expansion of online banking encompasses all high-tech 
banking services. The number of debit and credit transactions 
by bank tellers fell 7%, continuing a trend that began in the 1990s. 
At the same time, the number of requests for information via the 
Internet rose 48%, compared with the fourth quarter of 2003. 

Growing use of online banking and computerized telephone 
directories has led to a decline in the number of ATMs and 
customer terminals. The Bank of Israel believes that if alternatives 
are found to cash withdrawals, such as electronic wallets, or other 
methods based on the inclusion of verification technology in smart 
cards, they will replace ATMs, and cash withdrawals will be made 
via communications with customers. Examples are smart 
identification verification points, attached to customers’ PCs, 
through which they identify themselves and fill their electronic 
wallets. 

The Bank of Israel emphasizes that the use of smart cards as 
electronic wallets is spreading in the West. Seven countries now 
report their use, and the number of transactions is growing. 

During 2004, the electronic revolution caused a further drop in the 
number of bank branches to 951, continuing a trend of several 
years, and in line with global trends. Paralleling the decline in 
the number of bank branches, the number of work days at 
remaining branches has been reduced, with some branches 
now open only five days a week. 

Published by Globes [online], 
Israel business news - www.globes.co.il