The Bank of Israel has granted a conditional licence to establish Revolut Bank Israel, which is still in formation. The central bank also issued a control permit to the group’s controlling shareholder, Nikolay Storonsky. It presented the decision as a step towards greater banking competition. Technology, operating and regulatory conditions remain to be completed before the proposed bank can begin serving customers.[1]
The timing matters for brokerage and foreign-exchange businesses as much as for deposit-taking banks. A digital bank with international payment and currency capabilities can compete for the primary customer relationship: salary receipts, cash balances, cards, remittances and ultimately investment distribution. Acquiring a banking permission has a different strategic character from offering payment services through a third-party institution. It potentially changes funding, customer protections and the range of products a business can provide, but only after the relevant conditions are satisfied.[1]
Conditional permission is not a launch date
The Bank of Israel says the governor and banking supervisor delivered a conditional licence following a review, and that supervision will continue through remaining establishment milestones. The authority describes this as its third licence for a new bank since December 2019 following decades without such approvals. Those figures describe licensing decisions; they do not establish how many new banks subsequently achieved sustainable customer scale, nor do they measure the immediate effect on market pricing.[1]
The stages behind the announcement
| Step | Status as of 10 Nov | Consequence |
|---|---|---|
| Application review | Completed | Supervisor cleared conditional establishment |
| Control permit | Granted to group controller | Ownership-control requirement addressed |
| Conditional bank licence | Delivered | Bank-in-formation may complete prerequisites |
| Operational systems and controls | Still subject to requirements | Not evidence deposits are available today |
| Full commercial commencement | Not announced | Timing and products remain to be confirmed |
A domestic bank must meet requirements for capital, liquidity, governance and operating controls before it can begin the activities permitted by its licence. For prospective customers, the next useful disclosures are the opening date, exact account provider, product terms and foreign-exchange prices. The Israeli bank’s balance sheet and deposits will be local operating measures; Revolut’s global scale cannot substitute for them.[1]
The central bank presented the decision as a way to increase competition and broaden the services available to households and businesses. Revolut Bank Israel chair Shmuel Ben-Zvi said the group would adapt its international capabilities to the local market, while chief executive Uri Nathan described an ambition to compete through digital services. Those are the parties’ objectives; the remaining operational milestones must be completed before customers can judge the offer.[1]
Who should watch which milestone
| Stakeholder | Key question | Why it matters |
|---|---|---|
| Retail customer | When will accounts actually open? | Product terms and protections cannot be assumed |
| Local banks | Will deposits or FX flows migrate? | Competition for funding and payments |
| Regulator | Are launch conditions satisfied? | Safety and governance before scale |
| Fintech distributors | Will APIs or brokerage services follow? | Potential new domestic distribution infrastructure |
The next regulatory milestone is completion of the conditions needed to activate the bank licence and lift its restrictions. The Bank of Israel says it will supervise that process. The announcement does not provide a public account-opening date or final retail pricing.[1]
Sources & further reading
- Bank of Israel approves establishment of Revolut Bank Israel (in formation) Bank of Israel · Accessed 11 Nov 2026