Revolut wins conditional Bank of Israel license to set up a digital bank

The Bank of Israel, the country's central bank, has given Revolut conditional approval to found a bank in Israel, The Times of Israel reported on Tuesday. The British-based financial technology company is getting ready to bring its app-based banking to Israeli customers, and the regulator framed the decision as a move to increase competition in a sector it described as highly concentrated.

According to the report, the central bank's governor, Amir Yaron, and Daniel Hahiashvili, who serves as Supervisor of Banks, said a conditional license and a control permit were issued once the review and inspection process had been completed. A photograph released by the Bank of Israel shows Yaron handing the license to Shmuel Ben Zvi, chairman of the new Israeli entity, in Jerusalem on Nov. 10, 2026. The business daily Globes reported that Revolut becomes the third digital bank to win the central bank's approval, following One Zero and Esh.

What the Bank of Israel and the Supervisor of Banks do

The Bank of Israel is the state's central bank. Its governor, currently Amir Yaron, leads the institution. Within the central bank sits the Banking Supervision Department, headed by the Supervisor of Banks, a post now held by Daniel Hahiashvili. The supervisor's office is the body that regulates commercial banks operating in Israel, and it is the office that examines applications from would-be new lenders before any license is handed out.

In this case the regulator issued two documents. One is the conditional banking license itself. The other is a control permit, which in the language of Israeli banking regulation is the approval required for a party to hold control of a bank. Both were granted together, according to the statement cited by The Times of Israel.

Why a conditional license matters

The license does not mean Revolut can open accounts for Israeli customers today. Yaron described it as "a first step toward founding the new bank," and said the company would work to complete the process with guidance from the central bank. The reports do not spell out which conditions remain to be met before the bank can begin full operations.

The two outlets describe the decision with different emphasis. The Times of Israel characterises the approval as conditional and as a license to establish a bank. Globes, in its short report, describes Revolut as having been awarded a license to set up a bank and places it alongside earlier digital banks licensed to operate. Readers should treat the approval as the first formal stage rather than a final go-ahead, as the governor's own words indicate.

Competition in Israeli banking

Israel's banking sector has long been described by its own regulators as concentrated in the hands of a small number of large institutions. In remarks reported by The Times of Israel, Yaron said the main route to more competition is bringing new players into the industry, and that over the years the central bank has worked to lower entry barriers and make room for newcomers in the banking system.

Digital banks, which operate without traditional branch networks and serve customers mainly through apps and online services, have been the central bank's chosen vehicle for that effort. According to Globes, One Zero and Esh were the two digital banks licensed before Revolut. The arrival of a large international fintech brand marks a different kind of entrant from those locally founded ventures.

Who Revolut is

Revolut is a UK-based fintech company that both reports describe as a global giant in the field. It offers banking and payment services through a mobile app in a number of countries. The Israeli operation will run as a separate local entity. Its name appears in slightly different forms in the material: the Bank of Israel statement quoted by The Times of Israel gives it as Bank Revolut Israel, while the photo caption in the same report refers to Revolut Bank Israel. Shmuel Ben Zvi is identified as its chairman.

What the reports do not say

Neither report gives a date by which the new bank expects to open to customers, or lists the specific conditions attached to the license. Neither outlet carries a response from Revolut itself or from Israel's existing banks, and no figures are given on the capital the company plans to invest or the services it will offer at launch.