First Digital Bank in Israel has commenced a pilot run, becoming the first independent lender in the country to start operations since 1978.
Under the trial run, the bank started opening accounts and offering all banking services to a closed number of customers. In the third quarter of 2021, it aims to offer its services to 1,000 additional customers.
Go deeper with GlobalData
A general rollout is expected by the end of this year.
According to a Reuters report, Intel’s autonomous car business Mobileye co-founder Amnon Shashua founded First Digital Bank.
Shashua has invested around $60m into the venture as the bank aims to secure new funds to expand its operations.
Primarily, First Digital Bank will offer retail services digitally with no brick-and-mortar presence. All operations will be conducted online including opening a new bank account.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe scope of services is expected to include personal accounts, joint accounts, loans, deposits, credit cards and foreign currencies among others. The bank also intends to add mortgage services to its service portfolio in future.
Additionally, the bank is expected to leverage artificial intelligence and other new technologies to meet customer requirements.
Currently, First Digital Bank has 140 employees.
Last week, Bank Leumi, one of the largest lenders in Israel, reported a 40% drop in net income in 2020.
The drop was primarily attributed to an increase in loan loss expenses.
