First digital bank in Israel
2022.12.25 11:19
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First digital bank in Israel
Budrigannews.com – The second addition to the highly concentrated banking sector in three years, a group of entrepreneurs received a conditional license and control permit from Israel’s banking regulator on Sunday to establish a new online bank.
The new bank known as Esh Bank Israel had its inspection process, according to the Bank of Israel’s banking supervision department.
It stated that the approvals will enable the founders to proceed with the mechanical, operational, and regulatory preparations necessary for the beginning of the bank’s activities.
These include completing the new technology’s development and testing phases and recruiting bank staff and a management team.
According to the central bank, getting the bank up and running will take about a year and a half.
The chairman of Esh, Shmuel Hauser, stated, “We have a long way to go,” adding that the bank would provide free banking services and competitive interest rates.
One Zero Digital Bank became the first new Israeli bank in 43 years when it received final regulatory approval for a full banking license in January.
Israel’s banking system is highly concentrated and controlled by just a few banks, the two largest of which control more than half of the sector’s assets.
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Amir Yaron, governor of the Bank of Israel, stated, “We see great importance in the entry of banks and additional new players into the banking system in Israel, so that they contribute to increasing competition and innovation in the financial system.”
