Revolut Secures Conditional Israeli Banking License

The Bank of Israel granted Revolut a conditional license on Nov. 10 to establish Revolut Bank Israel (in formation), but set no customer launch date or rollout schedule.

The central bank said its Licensing Committee had completed its review. The control permit went to representatives of Nikolay Storonsky, Revolut’s controlling shareholder.

Revolut cannot activate the permit until it completes regulatory, technology and operational preparations and meets supervisory milestones. The approval advances the bank’s formation without starting customer service.

What does the conditional license cover?

The conditional license authorizes Revolut to establish a local banking entity under Bank of Israel supervision. It does not authorize the proposed bank to open accounts or provide products before activation.

The central bank’s decision separates permission to establish a bank from permission to operate one. Supervisory milestones still govern movement from conditional approval to an unrestricted license, and no customer-access timetable has been set.

When can customers expect service?

Supervisor of Banks Daniel Hahiashvili said that “about a year was a reasonable estimate for completing the requirements for an unrestricted license.” The estimate covers the time needed to meet regulatory conditions, not a confirmed date for customers to open accounts or access products.

Neither the license nor the one-year estimate establishes an account-opening date. Customer service depends on completion of the requirements and activation of the permit, so a product rollout remains unscheduled.

Governor Amir Yaron described the license as “an initial step.” He met Revolut leaders in London in late 2022 to encourage the company to enter Israel’s banking market. Yaron said Revolut would work with the central bank’s guidance to complete the process.

How significant is the approval for Israeli banking?

The Bank of Israel described the decision as its third license for a new bank since December 2019. It said no new bank had opened in Israel during the roughly 40 years preceding that period.

For customers, the approval is closer to a pending banking charter than an active account platform. Revolut can proceed with establishment and appoint leadership, while the remaining conditions keep the proposed bank outside customer service.

The central bank’s process has three stated workstreams—regulatory, technology and operational—before activation. Revolut has cleared the Licensing Committee’s review, but that review does not satisfy the remaining supervisory milestones.

Who leads the proposed bank?

The central bank named Uri Nathan as chief executive of the proposed bank and Shmuel (Muli) Ben Zvi as chairman. The appointments identify the leadership team as Revolut moves through the remaining authorization process.

Neither appointment changes the licensing conditions. Nathan and Ben Zvi hold designated roles at an entity still in formation, whose customer service cannot begin before the permit takes effect.

Does Revolut’s payment code mean it can already launch?

Revolut Ltd. received Bank of Israel identification code 78 on Aug. 20, 2024, before the conditional banking approval. The code lets a fintech participating in a controlled payment system assign payment-account numbers.

The Bank of Israel issued the code through a separate payment-system process. It did not authorize the proposed bank to begin operating, and it remains separate from the conditions attached to Revolut Bank Israel’s banking license.

What changes next?

The next observable milestone is completion of the requirements for an unrestricted license. Until the central bank confirms that work and activates the permit, the roughly one-year estimate remains an authorization timetable, not a date when Israeli customers can open accounts.