The Governor of the Bank of Israel and the Supervisor of Banks have informed the controlling shareholder of the Revolut Group that the examination process for a new banking licence has been completed. Following consultation with the Licenses Committee, the Governor issued the group’s representatives a conditional licence to establish the bank and a permit to control it on 10 November 2026. Until the restrictions on its licence are removed, the entity will operate under the name Revolut Bank Israel (under construction).
Third new bank licence since 2019
According to the Bank of Israel, this is the third licence granted to a new bank in Israel since December 2019, following a period of about 40 years in which no new bank opened in the country. The central bank has framed the decision as part of its effort to increase competition in the domestic banking sector.
In recent years, the Banking Supervision Department has introduced a series of measures to lower barriers to entry, including a gradual licensing outline and regulation tailored to small and new banks. The Governor stated that discussions with Revolut date back to the end of 2022, when he met the company’s leadership in London to encourage its entry into the Israeli banking market. In the Governor’s view, introducing additional players is the main route to increasing competition, and the conditional licensing of Revolut, alongside other applicants already in the process, reflects the outcome of these measures.
Next steps before launch
The control permit and conditional licence allow the Revolut Group to continue the preparations required before the bank begins operating under its licence, covering regulation, technology, and operations. The Banking Supervision Department will continue to oversee the establishment process, monitoring the completion of the milestones needed to activate the conditional licence and lift the restrictions attached to it.
The Bank of Israel describes Revolut as a profitable and growing global financial group offering payment, foreign exchange, credit, and deposit services. The Supervisor of Banks said the group’s entry has the potential to widen competition and expand the range of financial services and products available to consumers and businesses in Israel. Furthermore, the Governor added that the investment reflects confidence in Israel’s economy, its banking system, and its supervisory framework.
Positioning in the Israeli market
The company has indicated that the bank will draw on the group’s international experience and adapt its capabilities to local requirements. In addition, it was also said that the aim is to create competition in the Israeli banking market through a digital financial services offering, citing the country’s digitally literate public and its status as a technology hub as relevant factors.
For the Israeli banking sector, the licence marks the entry of an international digital financial services group into a market the central bank has been actively working to open to new participants. The announcement does not specify when the bank is expected to begin serving customers. Its launch remains subject to the completion of the milestones set by the Banking Supervision Department, which has also stated that it will continue to support other entities seeking to establish a bank in Israel.
