Bank of Israel Governor Prof. Amir Yaron and Supervisor of Banks Daniel Hahiashvili notified Revolut group controlling shareholder Nikolay Storonsky on Tuesday of the completion of the review process for granting a license to establish a new bank in Israel.
Following the process, which included consultation with the Licensing Committee, the controlling shareholder’s representatives were issued a conditional license to establish a bank to be named “Revolut Bank Israel (In Formation)” and a permit for control of the bank. This is the third license granted to a new bank in Israel since December 2019, following a period of some 40 years in which no new bank was opened in the country.
Receipt of the control permit and the conditional bank license will allow the Revolut group to continue and complete the preparations required ahead of the activation of the banking license, including in the fields of regulatory compliance, technology, and operations. The Banking Supervision Department will continue to accompany the establishment process and oversee its implementation as part of completing the milestones for activating the conditional license and removing restrictions from it, to the extent that these are completed.
Bank of Israel Governor Prof. Amir Yaron addressed the move, saying: “In late 2022, I went to meet Revolut’s leaders in London, when it was still a relatively small company, with the aim of convincing them to enter the Israeli banking market. The completion of the review process for granting the bank license today constitutes coming full circle. Over the years, I have expressed many times that the main path to increasing competition is by bringing additional players into the sector, and in these years we have worked to remove barriers to entry and create the conditions for the entry of new players into the banking system. Granting the conditional license to Revolut and the other players who are already currently in the process reflect the success of these steps. Revolut is an international financial group that serves many customers around the world, and has now chosen to establish a bank in Israel as well. This is a first step on the path to establishing the new bank, and together with the guidance of the Bank of Israel, they will work to complete the process. Revolut’s investment constitutes an expression of confidence in the Israeli economy, the banking system, and its supervision. I want to wish Revolut great success in establishing the new bank.”
Supervisor of Banks Daniel Hahiashvili added: “In recent years, the Banking Supervision Department at the Bank of Israel has led a series of steps to increase competition in the banking system. As part of the phased licensing model, the department promoted regulation adapted to small and new banks with the aim of enabling the entry of new players into the banking system and expanding competition within it, a vision that is being realized once again with the granting of the bank license to Revolut. Revolut is a global, profitable, and growing financial group with experience and broad geographic reach, which provides its customers with a variety of financial services, including payment services, foreign exchange, credit, and deposits. I view Revolut’s entry into the Israeli banking market as having the potential to expand competition and increase the variety of financial services and products offered to the public of customers and businesses in Israel. The Banking Supervision Department will continue to oversee the establishment process of the bank until the activation of the conditional license and the removal of restrictions, and to accompany other entities interested in establishing a bank.”
Dr. Shmuel (Moly) Ben Zvi, chairman of Revolut Bank Israel (In Formation), stated: “We thank the Bank of Israel for the professional and substantive guidance that brought us to this important milestone. As we enter the local market, we rely on Revolut’s international experience, innovation, and proven capabilities, and adapt them to the Israeli market with the aim of creating a significant and attractive value proposition for customers in Israel.”
Uri Natan, CEO of Revolut Bank Israel (In Formation), noted: “Israel is a global innovation and technology hub, with a sophisticated public possessing advanced digital literacy that expects financial services at the highest level. Our goal is to generate genuine competition in the Israeli banking market through a world-leading digital financial services environment, and we look forward to bringing this news to the Israeli public.”
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