Esh Bank Israel Ltd., a new digital lender co-founded by cybersecurity billionaire Nir Zuk, plans to split interest revenue with depositors upon its early 2026 launch, aiming to disrupt the country's banking sector. Having secured a conditional license in 2022, this strategy represents a novel approach to attract customers and challenge incumbent banks' traditional deposit models, signaling potential innovation in the Israeli financial landscape.
Esh Bank Israel Ltd., a new digital lender co-founded by cybersecurity billionaire Nir Zuk, is set to launch in early 2026 with a disruptive business model aimed at penetrating the incumbent Israeli banking sector. The bank's core strategy involves splitting interest revenue with depositors, a novel approach designed to aggressively attract customers by directly sharing the bank's earnings from deposits. Having secured a conditional license from the local regulator in 2022 as the second digital lender to do so, Esh Bank's market entry represents a significant development in Israel's fintech landscape. This revenue-sharing proposition directly challenges the traditional liability-gathering and net interest margin models of established banks, potentially creating competitive pressure on deposit rates and customer loyalty within the industry.
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