**Israeli Digital Bank Esh Bank to Share Interest Revenue with Depositors**
Esh Bank Israel Ltd., a new digital bank co-founded by cybersecurity billionaire Nir Zuk, is set to enter the Israeli banking sector next year with a unique offering: it will share 50% of its interest revenue with depositors. The 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. Esh Bank follows in the footsteps of One Zero Digital, a banking startup led by Mobileye Inc. co-founder Amnon Shashua, which became the first new bank in 43 years to obtain a full banking license in 2022.
Esh Bank will operate without physical branches, offering online checking accounts, loans, and credit cards. The bank has successfully raised 110 million ILS and developed advanced financial technology that allows for nearly autonomous operations, according to Zuk, who co-founded Palo Alto Networks Inc. and recently stepped down as its chief technology officer. Shmuel Hauser, the former head of the Israel Securities Authority, has been appointed as the bank’s chairman.
Zuk emphasized the bank’s low operational costs, stating, “We can take greater risks in giving credit because the margins are huge.” Esh Bank is currently in discussions with both new and existing investors to secure additional funding.
As a point of reference, One Zero Digital reported over 130,000 customers by the end of 2024 and claimed to have opened one-third of all retail accounts in Israel since its inception. Despite posting losses of 268 million ILS in 2024, a 25% decrease from the previous year, the bank’s growth indicates a strong demand for alternative banking solutions in the region.
Nir Zuk, originally from Israel, has made several investments in the country in recent years, including the launch of low-cost carrier Air Haifa and backing a left-leaning media outlet, Relevant, which ceased operations last year.
**FAQ**
**What is Esh Bank’s unique offering for depositors?**
Esh Bank will share 50% of its interest revenue with depositors, providing a competitive advantage in the banking sector.
