Bank of Israel Grants Revolut Conditional Banking License

The Bank of Israel on Tuesday granted the global Revolut group a conditional license to establish a new bank in Israel, clearing a major regulatory hurdle for the international fintech company's entry into the Israeli banking market.

Governor Prof. Amir Yaron and Supervisor of Banks Daniel Hahiashvili delivered the conditional license for "Revolut Bank Israel (in formation)," along with a permit for control of the bank, to representatives of the group's controlling shareholder, Nikolay Storonsky, after consulting the Licensing Committee.

It is only the third license granted to a new bank in Israel since December 2019, after some 40 years in which no new banks were established in the country, and it reflects the central bank's push to bring more competition to the banking sector.

The conditional license does not allow Revolut to begin operating as a bank yet. The company must first complete regulatory, technological and operational preparations, with the Banking Supervision Department overseeing the milestones required before the license is activated and its restrictions are lifted. The Bank of Israel did not say when the bank is expected to begin serving customers or what products and fees it will offer.

Revolut Bank Israel will be led by CEO Uri Nathan, with Shmuel (Muli) Ben Zvi as chairman. Revolut serves more than 80 million customers worldwide with payment, foreign exchange, credit and deposit services, and it also holds a separate license from the Israel Securities Authority to provide payment services in Israel.

Yaron said he first met with Revolut's leadership in London in late 2022 to encourage them to enter the Israeli market. "The completion of the review process for granting the banking license today brings things full circle," he said, adding that Revolut's investment is "an expression of confidence in the Israeli economy, its banking system and its supervision."