As an American who's living in Israel let me tell you that the backwardness of the US banking system doesn't even begin to COMPARE to the sheer inconvenience of banking here.
* No chip and PIN. Yep, same here.
* You have to interact with your branch for EVERYTHING. EVERYTHING. Not your bank. Your branch.
* The banking websites are all uniformly atrocious. Every single one looks like they designed it back in 2002 and just stopped and said, "meh, this is good enough."
* You pay for everything. Want to withdraw money from an ATM - your bank's ATM! - 1.76 ILS. You want to withdraw cash from a teller? 10 ILS. You wrote a check? 1.80 ILS. You thought about the bank on your way to work? 2.40 ILS.
* Checks can not be stopped. In fact it is illegal to issue a stop-payment on a check.
* The bank scrutinizes EVERY CHECK YOU WRITE. If the signature doesn't match the signature they have on file -- even a little bit because you were in a rush -- they reject the check. Oh, yeah, and they examine it by hand, not by machine. Oh and when they reject your check for technical reasons? 9 ILS.
* Direct debit... ok, actually, they've got this one covered. It's super easy. Except you still have to fill out a form that authorizes said payee to debit your account.
* You pay a monthly fee to the bank for the privilege of banking there. Not all banks have a monthly fee necessarily, but they all have surcharges so it all amounts to the same thing at the end of the day.
Oh gosh, don't even get me started on just how awful and inefficient the system is here. It is ripe for disruption except that the government has pretty strict controls around everything that goes on in the banking sector.