Fintech Giant Revolut Receives Conditional Banking License in Israel

The Bank of Israel has granted a conditional banking license to the fintech company Revolut, marking a significant step in increasing competition within the Israeli banking sector. Governor of the Bank of Israel, Professor Amir Yaron, and Supervisor of Banks, Daniel Hachashvili, informed Revolut's controlling shareholder, Nikolai Storonsky, of the decision after a thorough review process. This is the third new banking license issued in Israel since December 2019, following a 40-year period without any new banks being established. The move underscores the Bank of Israel's commitment to fostering competition by encouraging new players to enter the market. Revolut can now proceed with the necessary preparations for launching its banking operations in Israel, including regulatory, technological, and operational aspects. The Supervisor of Banks will closely monitor the establishment process and ensure compliance with the conditions for full license activation.

Governor Yaron expressed his satisfaction, recalling a meeting with Revolut's leadership in London in late 2022 to persuade them to enter the Israeli market. He emphasized that introducing new players is key to enhancing competition and that the Bank of Israel has worked to remove entry barriers. Yaron views Revolut's investment as a vote of confidence in Israel's economy and banking system. Supervisor Hachashvili highlighted the ongoing efforts by the Bank of Israel's banking supervision department to boost competition, noting that the tiered licensing framework supports new and smaller banks. He sees Revolut, a global, profitable, and growing financial group with extensive experience, as having the potential to expand competition and diversify financial services for Israeli customers and businesses.

Dr. Shmuel (Muli) Ben Tzvi, Chairman of Revolut Israel (in establishment), thanked the Bank of Israel for its professional guidance and stated that the company will leverage Revolut's international experience and innovation, adapting them to the Israeli market to offer significant value. Uri Natan, CEO of Revolut Israel (in establishment), added that Israel's sophisticated, digitally savvy population expects high-level financial services. Revolut aims to create genuine competition through a world-class digital financial services environment, anticipating bringing this innovation to the Israeli public.