Revolut Secures Israeli Banking License Amid European Regulatory Hurdles

Governor Yaron personally initiated discussions with Revolut's leadership in London in late 2022 to encourage their entry into the Israeli market. The move is part of a broader regulatory effort to increase competition in Israel's highly concentrated banking sector, where the five largest banks control approximately 99% of the market's assets. Finance Minister Bezalel Smotrich supported the initiative as a core economic policy to break down market concentration, lower fees, and attract international innovation.

Revolut Bank Israel will be led by Chairman Shmuel Ben Zvi and CEO Ori Nathan, with the group's controlling shareholder, Nikolai Storonsky, authorized to control the new entity. The license is conditional, requiring Revolut to complete regulatory, technological, and operational preparations before fully launching its services to the public. The Supervisor of Banks expects the bank to launch its services in under a year, and will closely monitor the establishment process.

The approval comes despite significant regulatory hurdles and scrutiny Revolut faces in Europe. The European Central Bank has restricted Revolut's new product launches due to risk management concerns, and Italy's antitrust regulator fined the company 11.5 million euros in April 2026 for unfair commercial practices. Additionally, Revolut recently experienced a data breach that exposed sensitive customer information, though the company stated its systems and customer funds were not compromised.