Revolut Seeks Key Roles in Israel, Signaling Bank Launch Plans

Fintech giant Revolut is actively recruiting for crucial positions in Israel, including debt collection managers, compliance officers, anti-money laundering specialists, and credit product managers. This hiring spree suggests the company is preparing to launch a full-fledged bank in the country, focusing on essential back-office functions rather than immediate marketing campaigns. The roles require familiarity with Israeli banking regulations, consumer protection, and privacy laws, indicating an intention to operate under the supervision of the Bank of Israel.

Uri Nathan, who previously managed Pepper, is leading Revolut's operations in Israel. The company currently operates in Israel through Revolut Payments Israel, which holds a payment services license from the Israel Securities Authority, similar to those held by Google and PayPal. This license permits money transfers and currency exchange, but offering deposits and loans requires a full banking license, a process Revolut has been discussing with the Bank of Israel for over a year.

Israel is exploring a tiered banking license system, with new banks in the lowest tier (up to NIS 15 billion in assets) receiving a three-year ramp-up period and reduced initial capital and liquidity requirements. A micro-bank with risk assets up to NIS 700 million could operate with NIS 50 million in equity, provided it has a clear exit plan.

Revolut, founded in London in 2015, has grown significantly, reporting $6 billion in revenue and $2.3 billion in pre-tax profit for 2023. It serves over 80 million customers globally. Despite its financial success, Revolut has faced regulatory scrutiny in Europe, including restrictions from the European Central Bank on launching new products and a fine from the Italian Competition Authority for unfair commercial practices. The company also recently disclosed a data breach where customer information was shared with impersonators.

Revolut's strategy in Israel appears to leverage the local market's familiarity with digital banking, aiming to compete by offering low-cost currency exchange, international payments, and multi-currency accounts. Credit and deposit services are expected to follow later. The compliance officers hired are anticipated to be very busy during the initial three-year supervisory period for any new bank in Israel.