International fintech giant Revolut is moving closer to entering Israel’s banking market. The Bank of Israel announced today that it has awarded a conditional banking license and a permit for the establishment of Revolut Bank Israel, after completing an assessment of the venture by the Bank of Israel’s Banking Supervision Department. This marks another step in efforts to increase competition within the local banking system, which is currently dominated by five major banking groups.
The license was granted to representatives of Nik Storonsky, the controlling shareholder of the Revolut Group, following consultation with the Licensing Committee. However, the new bank has not yet received authorization to begin offering banking services to the public. In the next phase, the group will be required to complete its regulatory, technological, and operational preparations, and to meet specific milestones set by the Banking Supervision Department, as conditions for activating the license and lifting the restrictions attached to it.
Revolut, founded in the UK in 2015, is one of the world’s largest fintech companies. It serves over 80 million customers globally. In early November, a share sale transaction was completed, valuing the company at $115 billion-up from $75 billion in November 2025. The group offers a range of digital financial services, including payments, currency exchange, credit, and deposit products. Revolut’s entry into Israel could expand the range of financial services available to the public and increase competitive pressure on existing banks, particularly in the areas of digital services and foreign exchange.
Revolut has already established a regulatory foothold in Israel. In 2023, the company received an identification code from the Bank of Israel to facilitate its integration into the payment system, and in July 2025, the Israel Securities Authority granted it a license to provide payment services. However, the company has not yet begun offering services to the Israeli public. At this stage, no information has been released on the launch date for banking operations, the specific service offerings, or the fee structures that customers will be charged.
The signing of the agreement to found Revolut Bank Israel was attended by Bank of Israel Governor Prof. Amir Yaron; Supervisor of Banks Daniel Hahiashvili; Revolut Group controlling shareholder Nik Storonsky, Dr. Shmuel Ben Zvi, Revolut Bank Israel chairman and Uri Nathan, CEO of Revolut Bank Israel.
This is the third license granted by the Bank of Israel to a new bank since December 2019, following 40 years in which no new bank was established in Israel. Preceding Revolut were One Zero, a digital bank controlled by Amnon Shashua, which received a license in 2019 and is already operating in Israel and Esh, which was licensed in December 2022 and currently operates on an invitation-only basis for account opening. Last July, a deal under which Isracard was set to acquire Esh collapsed. The Bank of Israel views this development as the outcome of measures taken in recent years to remove barriers to entry and adapt regulations for new, smaller banks.
The experience of One Zero also illustrates the challenges involved in entering the local banking market. The bank ended 2025 with a loss of NIS 214 million, and in the first half of 2026, it incurred further loss esof NIS 84 million. It was recently reported that Shashua is exploring the possibility of selling his controlling stake One Zero, after years of major investment.
Potential for expanding competition
Yaron recalled that in 2022, he met in London with the heads of Revolut, when it was still a relatively small company, to encourage them to enter the Israeli market. "The completion of the licensing review process today brings things full circle," he said. According to Yaron, the group's entry into Israel also represents "a vote of confidence in the Israeli economy, the banking system, and its regulatory oversight." Yaron noted that other players are already in the process of potentially entering the Israeli banking sector.
Supervisor of Banks Daniel Hahiashvili stated that he views Revolut’s entry as an opportunity to expand competition and increase the variety of financial products and services available to the public and businesses.
The new Israeli bank will be led Nathan, formerly CEO of Pepper, Bank Leumi’s digital banking platform, while Ben Zvi has been appointed chairman. Nathan said the bank’s objective is "to create genuine competition in the Israeli banking market through a world-class digital financial services environment."
The ultimate test for this move will be whether Revolut can translate its international operations into a competitive offering for the local market. In the UK, too, the company underwent a lengthy licensing process. Only in March 2026, after 20 months of preparation, did it receive approval to operate as a fully-fledged bank. Now, the company will need to complete a similar process in Israel before it can effectively compete with local banks.
Published by Globes, Israel business news - en.globes.co.il - on November 10, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.