The Israel Competition Authority has published a report claiming that the banks see fintech companies as rivals and are blocking their entry into the Israeli market, reported a local source Globes.
“The banks set many demands that weigh on fintech companies regarding opening bank accounts and their routine management,” the Israel Competition Authority has stated. “Some of the demands set by the banks are impossible to apply, delaying and even preventing the entry of fintech companies into operations in Israel and competing with the banks.”
The Israel Competition Authority also criticized the Israel Capital Market, Insurance and Savings Authority, which it claims has given a relatively small number of licenses to startups focusing on financial services so that they can operate in Israel.
The report stressed, “In our investigation we did not find any indications that the banks have formed policies and procedures with the aim of making it difficult for rivals.” But the report then continued to cite unreasonable and impossible to apply demands that effectively blocked the entry of fintech companies into the Israeli market.
The report stated, “The investigation by the Authority found that the banks see the fintech companies as a competitive threat in some areas of activity. Although we are talking about small companies, some of the banks see them as rivals in various profitable areas.”
Full Content: Globes
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