Anyone who has been to an Israeli bank knows that efficiency is not in the bank’s repertoire.  If you enjoy standing in line for seemingly meaningless tasks, spend some time in an Israeli bank.  And if you want to move your account to another branch (even within the same bank), fuhggetaboutit.

So, why are banks so infuriating for customers.  Most of it is in the legacy holdovers from the socialist days.  There is a lot of paper pushing, waiting and more than anything, decentralization of tasks.  Israeli bank branches act somewhat autonomously and processes are duplicated instead of being centralized.  That means more jobs and more work for employees.

So, it’s not surprising to see that Bank Hapoalim workers are pushing back on a proposal to streamline the bank, even when no layoffs are on the table.

The workers committee announced, “We oppose the restructuring at the bank and reject the streamlining document written by the bank’s management.”

What’s in store for the bank’s restructuring?

“2009 will be a very tough year in terms of the bank’s revenue. There is a need for streamlining and cost-cutting. Savings and streamlining are not a one-time exertion, but a way of life. We must be careful and calculating over every shekel we spend, and we must pare all unnecessary fat.” — CEO Bank Hapoalim

For a country with an extremely advanced technology backbone underpinning the Israeli banking system, it’s time we get the delivery of service accordingly.

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