Bank of Israel grants Revolut conditional license to establish Israeli bank
The approval clears a major regulatory hurdle for the fintech giant's entry into the local market, but it cannot yet begin operating as a bank. Revolut will now need to complete further technological, operational and regulatory preparations before offering services to customers.
The Bank of Israel granted the Revolut Group a conditional license on Tuesday to establish a bank in Israel, to be named Revolut Bank Israel (in formation). The central bank also granted a permit for control to the group's controlling shareholder, Nikolay Storonsky. The decision marks a significant step in the fintech giant's planned entry into the local banking market, although the launch of operations remains subject to further regulatory requirements. The announcement did not specify when the bank is expected to begin offering services to the public.
The license was issued following a review by the Bank of Israel's Banking Supervision Department, in consultation with the Licensing Committee. It will allow Revolut to complete the regulatory, technological and operational preparations required to establish the bank. The Banking Supervision Department will oversee the process and monitor the company's progress against the milestones it must meet before the license can be activated and its restrictions lifted.
According to the Bank of Israel, this is the third license granted to a new bank in Israel since December 2019, marking a significant development after four decades in which no new banks were established.
The approval comes just days after Calcalist revealed that Revolut had changed the name of its Israeli entity from "Revolut Payments Israel" to "Revolut Bank Israel (in formation)." As early as June 2025, it was reported that the company had been in discussions with the Bank of Israel about obtaining a license under a "lean bank" model, a structure that would allow it, among other things, to offer deposit services. In May, the central bank confirmed that Revolut had received approval to proceed with the licensing process. Revolut also holds a separate license from the Israel Securities Authority to provide payment services.
Last month, Calcalist reported that Revolut was expanding its recruitment efforts in Israel, focusing on areas including credit, risk management, compliance, collections and banking operations. The Israeli bank will be led by Uri Nathan, former CEO of Pepper, Bank Leumi's digital banking brand. Shmuel (Muli) Ben Zvi has been appointed chairman. Revolut serves more than 80 million customers worldwide.
Bank of Israel Governor Amir Yaron said discussions with Revolut's leadership began at his initiative in late 2022, when he met with the company's executives in London and sought to persuade them to enter the Israeli market. "The completion of the review process for granting the banking license today brings things full circle," he said. He added that "the primary path to increasing competition is by introducing additional players into the sector."
Yaron stressed that the conditional license is only the first step toward establishing the bank. Supervisor of Banks Daniel Hahiashvili said the license was granted under a tiered licensing process and a regulatory framework tailored to small, new banks. He noted that Revolut provides payment, foreign exchange, credit and deposit services in markets around the world, adding that its entry into Israel is expected to increase competition and expand the range of services available to households and businesses.
The Bank of Israel's announcement did not specify which products Revolut will offer in Israel once it begins operating, or what fees it plans to charge.
Nathan said the bank aims to "create genuine competition in the Israeli banking market through a digital financial services environment." Ben Zvi added that the company is working to adapt Revolut's international experience and capabilities to the Israeli market.
