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JERUSALEM – The Bank of Israel has granted Revolut a conditional banking license and a control permit for “Revolut Israel Bank (in formation),” advancing the international financial group’s entry into Israeli banking without yet authorizing an unrestricted consumer launch.
Governor Amir Yaron and Banking Supervisor Daniel Hahiashvili completed their examination of the proposal, and Yaron handed the conditional license and permit to representatives of Revolut controlling shareholder Nikolay Storonsky, the central bank said in its November 10 announcement. The decision followed consultation with the licensing committee.
The license allows Revolut to continue preparations in regulation, technology and operations. Banking supervisors will oversee completion of the milestones needed to activate the conditional license and remove its restrictions, if those requirements are met.
The announcement did not give an opening date, a timetable for completing the milestones or details of fees, deposit rates or other products for Israeli customers. The conditional approval is therefore a licensing step, not confirmation that the new bank is already open for business.
The Bank of Israel said this is the third license granted to a new bank since December 2019, following an earlier period of about 40 years in which no new bank opened in Israel. It presented the decision as part of its effort to bring new competitors into banking.
Yaron said he had met Revolut’s leadership in London in late 2022 to encourage the company to enter Israel. He described the conditional license as a first step toward establishing the bank and characterized Revolut’s investment as a vote of confidence in Israel’s economy, banking system and supervision.
Hahiashvili said the regulator’s phased licensing framework and rules adapted for small and new banks were intended to lower barriers to entry. He said Revolut’s arrival had the potential to expand competition and the range of financial services available to households and businesses. That was his assessment of the opportunity, rather than a promised outcome for customers.
Shmuel Ben Zvi, chairman of Revolut Israel Bank in formation, said the group would adapt its international experience and capabilities to the Israeli market. Chief Executive Uri Nathan said the aim was to create competition through digital financial services. Neither statement set a consumer launch date.
The Israeli licensing decision is distinct from JBizNews’ earlier coverage of Revolut’s valuation and U.S. banking plans. The next steps in Israel depend on the bank completing the regulatory, technical and operational conditions set out by its supervisor.
JBizNews Desk | Jerusalem
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