Israel Banking: Revolut Gets Conditional License

The Bank of Israel granted a conditional license to Revolut on Tuesday, permitting the fintech firm to establish a new banking entity in the country.

The central bank completed its review and inspection process for the new institution, which will operate as Bank Revolut Israel. Governor Amir Yaron and Supervisor of Banks Daniel Hahiashvili announced that this approval marks the first step in founding the bank. Revolut must now work with the regulator to finalize remaining requirements before becoming fully licensed.

This is the third new banking license issued by the Bank of Israel since December 2019. The move targets a market long dominated by five major banks. Critics have argued that this concentration allows existing institutions to charge high fees and offer low interest rates on deposits and savings products.

Finance Minister Bezalel Smotrich welcomed the decision, stating that the government's objective to increase competition is yielding results. He noted that the 'small banks' reform is a cornerstone of the latest Economic Arrangements Law. Smotrich said that opening the sector to international players helps attract innovation and lower prices.

Revolut, founded in London in 2015, serves more than 80 million customers globally and has a valuation of $115 billion. In 2026, the company launched banks in the UK, Mexico, Australia, and New Zealand, while securing licenses in France, Colombia, and Argentina. The new Israeli entity will be led by CEO Uri Nathan, a former chief executive of Pepper, Bank Leumi’s digital platform. Shmuel Ben Zvi will serve as chairman.

Nathan stated that the goal is to create genuine competition through a world-leading digital financial services platform. Revolut has not yet disclosed the specific services it will offer to Israeli consumers. The company previously operated as a digital bank without physical branches, providing payments, currency exchange, credit, and deposit products.

Bank Revolut Israel joins two other recent entrants in the digital banking space. One Zero Digital Bank Ltd., founded by Amnon Shashua, launched in early 2023 as the country's first fully digital bank. Esh Bank Israel Ltd., co-led by Nir Zuk of Palo Alto Networks, received its full license in 2024. Esh Bank has operated in pilot mode for two years, and its planned public launch in 2026 appears delayed.