Data report: How Israeli banks fumbled hundreds of millions in immigrant capital
The Economic Integration Org published first-party data from 2 years of immigrant surveys, with over 1000 unique qualitative and quantitative responses.
Originally published for: The Economic Integration Org
Wars. Political persecution. Pogroms. Antisemitic attacks: In 2024, immigration to Israel is at a 25-year high. So why are local banks standing in the way?
At a time of rising global antisemitism, Israel is under pressure to stand ready to integrate more new immigrants. And in the last two years alone, in an immigration wave triggered by Russia’s invasion of Ukraine, the country saw over 100,000 people seeking to rebuild their lives in Israel permanently. The need for a strong Israeli economy has never been greater.
From 2022-2024, the EIO and its founders received over 1,000 survey responses detailing the barriers faced by new immigrants when dealing with Israeli banks.
These two years of survey findings should be a wake-up call to the banking regulator and the banks.
The fates of families and their futures hang in the balance, with blocked international transfers of legitimate, audited funds: a staggering 50% of new immigrants faced obstacles in transferring their savings, salaries, and other documented funds to Israel from abroad.
Not to mention, humiliating treatment in banks, leading to many reporting feeling unwanted in their new country - countless giving up, leaving Israel for good, to contribute their talents, ideas, and tax payments to other countries. The ones that leave will no longer believe in the Israeli dream of shared economic security.
These findings highlight the pressing need to establish a substantial, uniform policy to guide banks in their application of international sanctions, allowing immigrants to go through compliance in a standardized workflow, with dignity and respect.
All parties -customers, banks, the State of Israel, and the judicial system- will benefit from a transparent, organized policy on banking services:
Customers and Immigrants: Gain certainty and protection from unfair or subjective treatment.
Banks: Operate with more certainty under unified regulations that mitigate their risk.
The State of Israel: Benefits from legal and appropriate funds, supporting economic growth and immigrant integration.
The Judicial System: Saves time by reducing unnecessary legal proceedings, thanks to clear policies.
The time is now. The country cannot delay the resolution to this problem for one day more. Our shared economic future depends on every single immigrant to Israel receiving equal access to banking services. It’s time to stand together, for justice, fairness, and democratic values.
Read more about how The Economic Integration Org is pressing the Bank of Israel to regulate how private banking corporations in Israel run workflows and risk management in dealing with foreign capital.