Israel To Mandate Open Banking Despite Political Deadlock

After months of political deadlock, Israel’s banking regulator has taken up the mantle of open banking, announcing it will require banks to provide fintechs with access to customers’ accounts.

The Israeli parliament has not sat since April this year after major parties failed to form a governing coalition following two elections, and a third vote appears inevitable. That has meant a flagship law that sought to give open banking legal basis has not come into force.

Instead, the Bank of Israel has decided to publish a directive establishing the tenets of the open banking ecosystem, alongside an API standard that was already under development.

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