Revolut Secures Conditional Banking License in Israel, Competition Expected to Rise
Translated & summarized from Mignews by baba
The Bank of Israel has issued a conditional banking license to the fintech company Revolut to establish Revolut Bank Israel. This move is expected to increase competition and offer better financial services to Israelis, particularly for international transactions. The company, founded by Nikolay Storonsky and Vladislav Yatsenko, must still meet regulatory requirements before launching full operations. Shmuel Ben-Tsvi and Uri Natan have been appointed as Chairman and CEO, respectively, but the service launch date is unknown.
The story in 6 lines · by baba
- Revolut received a conditional banking license from the Bank of Israel to operate in the country.
- The new bank, Revolut Bank Israel, is expected to increase competition in the Israeli financial market.
- The company's main owner, Nikolay Storonsky, will have control over the new Israeli banking entity.
- Revolut's entry is seen as beneficial for Israelis who travel or conduct international financial transactions.
- Specific service conditions, tariffs, and the launch date for Israeli customers are not yet announced.
- Shmuel Ben-Tsvi and Uri Natan have been appointed as Chairman and CEO of the new bank.
The Bank of Israel has granted Revolut, an international fintech company, a conditional license to establish a bank in the country, named Revolut Bank Israel. The license also permits the group's main owner, Nikolay Storonsky, to control the new entity. This move is anticipated to intensify competition within Israel's banking sector and potentially offer consumers more advantageous terms for foreign currency transactions, international transfers, and other financial services. However, the exact launch date and specific customer service conditions remain undisclosed.
Revolut becomes the third new bank to receive a license in Israel since 2019, following One Zero and Esh. The company, founded in London by Nikolay Storonsky and Vladislav Yatsenko, focuses on digital financial services. Its entry into the Israeli market is seen as particularly relevant for Israelis who frequently travel, shop abroad, or send money internationally, as well as for entrepreneurs engaged in foreign business dealings.
While Revolut has not yet detailed its specific tariffs, fees, or service conditions for Israeli customers, the Bank of Israel expects new entrants to foster greater competition and expand service options. Bank of Israel Governor Amir Yaron noted his personal meeting with Revolut's leadership in London in late 2022 to encourage their expansion into Israel, calling the license issuance a significant step.
The conditional license requires Revolut to complete technical and organizational preparations and meet regulatory demands before full banking operations can commence. It is currently unclear what terms Revolut will offer for accounts, deposits, and loans, or if Israeli clients will be able to utilize European banking details. Shmuel Ben-Tsvi has been appointed Chairman of the Board of Directors for the new bank, and Uri Natan, formerly head of Leumi Group's digital bank Pepper, will serve as CEO. The date for the commencement of customer services has not yet been announced.
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