**Israeli Digital Bank Esh to Share Interest Revenue with Depositors**
Esh Bank Israel Ltd., co-founded by cybersecurity billionaire Nir Zuk, is set to enter the Israeli banking sector next year with a unique offering: sharing interest revenue with depositors. The digital bank, which received a conditional license from local regulators in 2022, plans to launch accounts for a select group of customers in early 2026, as announced by CEO Yuval Aloni during a press conference in Tel Aviv.
The move comes as investors in Israel’s tech industry aim to disrupt the country’s banking landscape, which is dominated by five major lenders controlling most of the assets. Notably, One Zero Digital, a banking startup led by Mobileye Inc. co-founder Amnon Shashua, became the first new bank in 43 years to obtain a full banking license in 2022.
Esh Bank will deposit 50% of the interest revenue generated from customer funds directly into their accounts on a weekly basis, according to Aloni. The bank has successfully raised 110 million ILS and developed advanced financial technology that allows for nearly autonomous operations, as stated by Zuk, who co-founded Palo Alto Networks Inc. and recently stepped down as its chief technology officer. Esh will operate without physical branches, providing online checking accounts, loans, and credit cards.
Shmuel Hauser, the former head of the Israel Securities Authority, has been appointed as the chairman of the new bank. Zuk mentioned that Esh is currently in discussions with both new and existing investors to secure additional funding. He emphasized the bank’s low operational costs, stating, “We can take greater risks in giving credit because the margins are huge.”
One Zero Digital reported over 130,000 customers by the end of 2024 and claimed to have opened one-third of the retail accounts in Israel since its inception. Despite posting losses of 268 million ILS in 2024, a 25% decrease from the previous year, the startup continues to grow.
In recent years, Zuk has made several investments in Israel, including the launch of low-cost carrier Air Haifa last year and backing a left-leaning media outlet, Relevant, which ceased operations last year.
As Esh Bank prepares for its launch, it aims to redefine banking in Israel by prioritizing customer benefits and leveraging technology to enhance financial services.
**FAQ**
**What is Esh Bank’s unique offering for depositors?**
Esh Bank plans to share 50% of the interest revenue generated from customer deposits directly into their accounts on a weekly basis, aiming to attract customers in a competitive banking environment.
