Israel’s first new bank in more than 40 years, the First Digital Bank (FDB), has raised a $120 million Series A funding round led by a group of prominent investors such as Chinese tech conglomerate Tencent, Japanese financial company SBI Holdings (formerly part of Softbank), and Swiss wealth management firm Julius Baer, one of Switzerland’s oldest banking institutions. The fully digital bank, founded by tech entrepreneur Amnon Shashua, also the founder of autonomous driving systems company Mobileye (an Intel subsidiary), was approved by the Bank of Israel in 2019 and is currently operating in pilot mode, offering banking services to employees and their families. The bank said it was planning a soft launch, or a limited launch, to the Israeli public early next year and a future expansion into other international markets. The First Digital Bank is an independent bank that hopes to compete with the nation’s five largest banking groups, which today hold some 98% of the market. In 2019, it was the first to receive a banking license in Israel in over 43 years.
The bank will have no branches and will operate by integrating human bankers — who provide around-the-clock customer service through online chat and a call center — with advanced artificial intelligence-based technology that aims to create customized service experiences for customers. It will offer all existing banking services, including personal accounts, joint accounts, loans, deposits, credit cards, stocks, guarantees, standing orders, and foreign currencies. Mortgages will be added to the list of offerings in the future. FDB is now joining forces with highly reputable and financially strong global investors. The new investors will enhance FDB’s resilience, enabling to offer consumers a true alternative to the traditional banks in the market. The team is excited about the immense impact this could have on Israeli households and are looking forward to working with our new investors to reach additional markets. Israel’s banking sector is undergoing significant reform that will pave the way for new financial services for customers at more competitive rates.