Bank of Israel Grants Revolut Conditional License to Establish Local Bank
The Bank of Israel granted British fintech giant Revolut a conditional banking license, marking the third new bank approved in the country after a four-decade hiatus.
The Bank of Israel has granted British fintech giant Revolut a conditional banking license, paving the way for the company to establish operations in the country. Bank of Israel Governor Amir Yaron delivered the ruling to representatives of controlling shareholder Nikolay Storonsky, including a permit to control the banking institution. The decision follows a thorough evaluation by the Banking Supervision department and consultations with the Licensing Committee, marking the third new bank license issued since December 2019 after a four-decade hiatus.
Expanding Local Operations
The conditional license allows Revolut to proceed with establishing its banking infrastructure. Before launching official services, the group must finalize technical, operational, and regulatory preparations. The Banking Supervision department will oversee the implementation phase to ensure compliance with operational standards before restrictions are lifted. Local media reports indicate that the Registrar of Companies recently approved changing the local entity's name from Revolut Payments Israel to Revolut Bank Israel (In Formation).
Leadership and Market Entry Strategy
Revolut serves over 80 million customers across 40 countries and employs more than 13,000 staff members, offering payment processing, foreign exchange, credit, and deposit services. Governor Yaron noted that he met with company executives in London in late 2022 to encourage their market entry, calling today's milestone a full-circle moment. Supervisor of Banks Daniel Hahiashvili stated that the license is part of a phased regulatory framework tailored for smaller financial institutions to ease market entry. The local branch is led by CEO Ori Natan, former head of Leumi's Pepper digital bank, alongside Chairman Shmuel Ben-Zvi.
