Digital Bank Revolut Receives Conditional License to Operate in Israel

The Bank of Israel has approved the global Revolut Group's application to establish a bank in Israel, marking a significant step towards increased competition in the Israeli banking sector. Governor Amir Yaron and Supervisor of Banks Daniel Hachashvili announced on Tuesday that the examination process for a conditional license for "Revolut Bank Israel (Under Establishment)" has been completed. This is the third new banking license issued in Israel since December 2019, following a 40-year period without new bank establishments.

The license granted to Revolut is conditional, meaning the bank cannot yet operate fully with the public. The group must now meet a series of regulatory, technological, and operational milestones. The Bank of Israel's banking supervision department will continue to oversee the establishment process, and the license restrictions will only be lifted upon fulfillment of all conditions.

Revolut has already obtained an identification code in Israel's payment systems, signaling its prior entry into the local market as an international payment service provider. Governor Yaron stated that his engagement with Revolut began in late 2022, when he met with the company's leaders in London to encourage their entry into the Israeli banking market. He views the completion of the licensing process as a "full circle" and emphasized that new entrants are crucial for boosting competition, calling Revolut's investment a "vote of confidence in Israel's economy, banking system, and its supervision."

Supervisor of Banks Hachashvili described Revolut as a "profitable and growing global financial group" offering services like payments, foreign exchange, credit, and deposits. He anticipates that Revolut's entry will expand competition and diversify financial services for Israeli customers and businesses. The Bank of Israel had previously identified Revolut as one of the entities undergoing licensing procedures as part of an initiative to facilitate the entry of new, smaller banks.

Shmuel (Muli) Ben Tzvi, Chairman of Revolut Israel Bank, expressed the company's intention to leverage the group's international experience and technological capabilities for the Israeli market. Uri Natan, CEO of the bank under establishment, added that their goal is to foster genuine competition through a world-class digital financial services environment. A timeline for the bank's public launch has not yet been announced.