While the number of bank branches decreased between 2012 and 2019 by 11.7%, the number of ATMs increased by 35.8%, while the average withdrawal amount from ATMs increased by 63.4%. The number of private ATMs jumped by 227.7%. This emerges from a survey conducted by the Knesset Research Center, at the request of former Knesset member Hila Shai Wazan (New Hope), chair of the subcommittee for examining failures in the field of consumerism in the Economics Committee.
At non-ATMs the amount of withdrawal is limited and the commission is very high, but their spread is wider. The main reason for this is that the public agrees to pay the high commission. Other reasons are: locations (for example: in malls or stores) and that the commission at non-bank ATMs includes VAT and there are also additional costs, such as withdrawal fees from banking corporations and the cost of credit on cash on devices, compared to commission at ATMs that do not include VAT and cost of cash .
The total withdrawals from private non-banking ATMs are estimated at only 10% of the total withdrawals on the market (approximately NIS 13.3 billion) and the number of withdrawals from non-bank ATMs is estimated at 25% of the number of withdrawals on the market (approximately 37.4 million withdrawals).
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The total withdrawals from private non-bank ATMs are estimated at only about 10% of the total withdrawals in the market. Illustration
(Shatterstock)
According to the review, Caspont has a market share of approximately 75.8% of the number of non-bank ATMs (its competitors are the Tamar Foundation and Matrix), and it operates approximately 3,500 ATMs throughout the country out of 4,620 private individuals. At the same time, the company has a market share of a few percent in financial withdrawals out of the total withdrawals in the market.
In the banking market segment of ATMs, the five largest banks (Leumi, Hapoalim, Discount, Mizrahi-Tefahot and International) have almost complete control. The banks also control Masab (a banking clearing center owned by the five largest banks) and have a share of ownership in the ISA (a public company responsible for communication between the banks).
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In addition, the five largest groups have a share of 99.2% of the total assets in the banking system (with the three largest groups holding 75% of the market – Leumi 28.7%, Hapoalim 27.7% and Mizrahi Tefahot 18.7%). Accelerated transition to digital means reduces costs for banks, so their assets increased between 2014 and 2019 by about 21% and their operating expenses increased by only 1%.
Private players began to enter the market after the removal of the cash withdrawal fee on a device more than 500 meters from the bank in 2005. This has since led to a sharp increase in the number of ATMs to withdraw cash. Until then, banks did not have the economic viability of setting up remote ATMs and this, as stated, also constituted an incentive for non-bank companies to enter.
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Illustration
(Photo: shutterstock )
Tel Aviv is the city with the most ATMs – 557. It is followed by Jerusalem, Petah Tikva and Haifa. Compared to sub-districts, Judea and Samaria, the Golan Heights, Sharon and Be’er Sheva have the largest number of residents per ATM. The smallest: in Tel Aviv.
How much cash do we withdraw? In 2019, the total withdrawals at the banks’ cash registers were approximately NIS 114.3 billion, a decrease of a cumulative rate of 13% compared to 2012. In 2019, the total withdrawals at ATMs were approximately NIS 119.3 billion, a cumulative increase of 61% compared to 2012.
In 2019, the total cash withdrawals at the bank coffers were 7.6 million withdrawals, a decrease of a cumulative rate of 51% compared to 2012. In 2019 the total cash withdrawals at ATMs was 112.3 million withdrawals, a decrease of a cumulative rate of 2% compared to 2012.
In January-July 2020, the average withdrawal amount from the funds was NIS 19,015, an increase of 124% compared to 2012. At ATMs: NIS 1,185 – an increase of 82% compared to 2012. This finding may indicate that the use of funds in bank branches decreased and became a means of withdrawal mainly in large transactions. The average withdrawal amount at ATMs was about NIS 1,085 and the maximum amount for withdrawal at non-ATMs was about NIS 500.
How much does it cost to withdraw our money from ATMs? The amount of a direct channel fee is on average NIS 1.9 per withdrawal and is free for customers who are exempt from current fees, or customers as part of a fee track, or if the device is required (a device that the Bank of Israel requires the bank to leave as a condition for branch branch approval). 65 such devices as of November 2020. Withdrawing cash from an ATM of a non-customer bank entails a fee of approximately NIS 6.5-5.
Withdrawal fee from a non-bank ATM, is not monitored as stated and ranges from 2 to 8 shekels including VAT. According to the Tamar Fund, such a withdrawal fee is similar to a fee at a bank ATM remote from the branch. Also, a single withdrawal amount from a non-ATM is limited Usually for NIS 500. At the Keren Hatamar ATM, for example, the withdrawal amount is limited to NIS 2,000, as is the case with the Matrix.
Already two years ago, the issue of ATM fees came up for discussion
(Photo: Eli Segal)
In January 2019, the law came into force to reduce the use of cash, which was enacted with the aim of reducing the volume of capital in the market and assisting in the fight against criminal activity, by reducing the use of cash. This has led to a slowdown in the increase in the amount of cash in the economy, but it is still evident that cash is the main means of payment among the public.
Despite the increasing digitization of the means of payment, the public in Israel is still fond of cash. According to the annual survey of the Bank of Israel’s Currency Department, in 2019 the cash turnover held by the public and in bank safes was NIS 87.2 billion, an increase of 2% compared to 2018, compared with an average increase of 5% per year in the previous three years and an average increase of 8% per year. in the last decade.
As of February 2021, turnover is NIS 106.510 billion, according to data published by the Bank of Israel on its website. The use of cash is especially essential for populations in the periphery and in adulthood. In the world, Israel is ranked sixth in the number of ATMs per 100,000 inhabitants, after Korea, Canada, Austria, Portugal and Australia. The number of ATMs per 1,000 square kilometers in Israel was about 401.8 – second place after Korea and about 205.8% higher than the OECD average (131.4.