Revolut Receives Conditional License to Establish Bank in Israel

In depth

The Bank of Israel has granted the Revolut group a conditional license to establish Revolut Bank Israel, the third license for a new bank issued since 2019. This is the first license for a new bank in Israel in about 40 years. The bank will need to complete regulatory and technological requirements before it can begin operating. Governor Amir Yaron said the best way to increase competition is to bring additional players into the sector.

Revolut is an international fintech giant serving more than 80 million customers worldwide, with a valuation estimated at $115 billion. The license was granted to Nikolay Storonsky, the controlling shareholder of the group, after review by the supervisor. The bank will be called Revolut Bank Israel (in establishment), and the Supervisor of Banks will accompany the establishment and examine compliance with the conditions for operating the license and lifting the restrictions.

The Supervisor of Banks estimates that Revolut will offer deposits and securities trading, not only foreign currency. This is the first stage of extensive preparations: the new bank is awaiting further regulatory approvals, and has already recruited senior figures in the local market and connected to a service provider for the process. The bank is considering an offer of current accounts, deposits, loans and payment cards, and is expected to challenge the veteran banks. The license was granted as part of a framework for small banks formulated by the Finance Ministry and the Bank of Israel, and the Finance Minister welcomed the move.