Amnon Shashua Credit mobileye
One Zero, the new Israeli digital bank previously called The First Digital Bank, has gotten off to one hell of a great start in just 18 months of doing business. Globes revealed the bank reported it ended 2022 with over 50,000 customers and NIS 1.2 billion ($340 Million) in deposit and current accounts. Of the 50,000 customers, 30% say that their One Zero account is their main bank account with more than NIS 5,000 ($1,400) entering the account each month.
61% of customers are aged between 25 and 44, 16% between 45 and 54, 11% over 55, and 12% between 18 and 24.
One Zero CEO Gal Bar Dea said, “Our business model allows us to operate at a third of the cost per account of a normal bank, so that we can be very profitable at half the income from an account. We have a sufficient balance of capital to ensure the continued activity and growth of the bank and we plan to raise additional capital in order to continue to strengthen in the Israeli market and expand to Europe. We estimate that along with the continuation of our growth and expansion plans, we will end losses and subsequently profitability in just a few years.”
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When One Zero won approval from the Bank of Israel a little more than one year ago, it was the first time in 43 years that a new bank was established in Israel. The decision was made after the bank completed the process of meeting the milestones set for it, and after the Supervisor certified the completion of the establishment process.
More and more, banking and finance is going digital, or if you prefer virtual. This is not about cryptocurrencies, but they are related to the subject. This is more about how banking is being done almost exclusively online these days, and through mobile devices.
Forbes explains that online banks have emerged in the financial services space as alternatives to brick-and-mortar banks, and have introduced new ways of banking. Forbes also says that today in the U.S. three in four Americans (76%) have used their primary bank’s mobile app within the last year for daily banking tasks, according to Ipsos-Forbes Advisor U.S. Weekly Consumer Confidence Survey data from February 2021.
So, a digital bank is one where a virtual process that includes online banking and more are the main way in which it does business. Digital banks must encompass the front end that consumers see, the back end that bankers see through their servers and admin control panels and the middleware that connects these nodes. A digital bank should have all the same functions as a head office, such as, branch office, online service, bank cards, ATM and point of sale machines.
One Zero Digital Bank Ltd completed the process of meeting all the milestones set for the establishment of the bank, including raising the required amount of capital.
