Digital Bank Revolut Receives Conditional License to Operate in Israel

The Bank of Israel has granted a conditional license to establish a new bank in Israel, "Revolut Bank Israel (in establishment)," part of the global Revolut group. This decision, announced by Governor of the Bank of Israel Prof. Amir Yaron and Supervisor of Banks Daniel Hachashvili, aims to significantly increase competition in the Israeli financial market. The approval follows an extensive review by the banking supervision department and consultation with the licensing committee. This marks the third license issued to a new bank in Israel since December 2019, ending a 40-year period without new bank establishments. Governor Yaron described the licensing as a "full circle" moment, recalling a 2022 meeting in London with Revolut's leadership when the company was smaller, to persuade them to enter the Israeli banking sector. He emphasized that introducing new players is the "royal road" to boosting competition and views Revolut's investment as a strong vote of confidence in Israel's economy and banking system.

Supervisor of Banks Hachashvili highlighted that the department has implemented regulatory measures, including tailored regulations for new and small banks under a "phased licensing framework," to remove barriers for new entrants. He believes Revolut's entry has substantial potential to expand competition and diversify financial products and services for the public and businesses. The new bank's management, led by Chairman Dr. Shmuel Ben Tzvi, plans to adapt the global group's international experience and innovation to the Israeli market, offering an attractive and competitive value proposition to customers. The conditional license allows Revolut to complete necessary preparations in regulation, technology, and operations before full launch, with the banking supervision department closely monitoring the establishment process until permanent licensing is granted.