Israeli digital bank One Zero is undergoing a streamlining process, in which more than twenty employee will be laid off, about 5% of the company’s workforce, and its expansion to Italy will be suspended until further notice. This is because of the prevailing economic uncertainty and the effect of the war, according to a letter from One Zero CEO Gal Bar Dea to the bank’s employees, dated today.
"Before the war, we began the bank’s planned expansion overseas," Bar Dea wrote. "This was part of the business plan that we outlined from day one, whereby we invested in the development of technology designed to support global expansion, in a range of languages and of currencies. We chose Italy as the first country in which we would launch our new activity, and we linked up with well-known international partners. This plan remains valid and we are committed to it, but, as we have made clear to you, the war and the uncertainty that it entails have led to the suspension of progress on it, until things calm down and the security situation stabilizes. Our focus at this stage, as mentioned, is on the growth of the bank in Israel and reaching profitability."
Bar Dea stated that the bank’s revenue in the first half of this year was 150% higher than in the first half of 2023, while expenses fell 20%. Non-interest income, from subscription fees and trading and foreign exchange commissions, rose fivefold, and the credit portfolio grew by 75% to NIS 312 million. Deposits from the public rose by 62% to NIS 2.34 billion. "Our focus is on continued growth and improvement in all financial parameters alongside continued consistent contraction in expenses so as to reach profitability in accordance with the business plan and despite the situation in Israel. All the more in this period of war and uncertainty, like many enterprises at this time, we must behave responsibly and adjust the enterprise’s resources."
In its financials published in March, One Zero reported a loss of NIS 357 million for 2023, following a NIS 263 million loss in 2022, largely because of investment in technology.
Published by Globes, Israel business news - en.globes.co.il - on September 9, 2024.
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