Israel’s First Digital Bank has concluded an agreement with Citi for foreign currency payment services. The agreement comes a week after First Digital Bank, owned by Prof. Amnon Shashua, began a pilot project for a limited number of customers ahead of full retail banking operations by the end of the year.
First Digital Bank CEO Gal Bar Dea said, “This is the first collaboration with the aim of establishing broader relations in other projects.”
Israel’s First Digital Bank begins operations
He added, “This agreement is another step in establishing the range of services that the First Digital Bank will provide its customers with the aim of creating competition in the foreign currency payment transfers market.”
In the first stage, Citi will provide the First Digital Bank with SWIFT foreign currency clearing services and in the second stage Citi will offer the First Digital Bank’s customers access to Citi’s Worldlink money transfer system.
These are essential services for the First Digital Bank, which intends becoming a member of the Tel Aviv Stock Exchange and creating collaborations on share trading worldwide.
Sources at the bank said that, “The agreement with Citi will allow customers to conduct foreign currency transfers in dozens of different currencies. The bank plans being a major player in the foreign exchange market, in which high fees are charged.”
The First Digital Bank was initially established several years ago by Check Point founder Marius Nacht. Mobileye founder and CEO Shashua came in as a minority shareholder before buying out Nacht, who preferred to concentrate on his med tech investments. However, sources believe that Shashua is working to bring in new partners.
The First Digital Bank will be the first new bank in Israel to be established and begin operations since 1978.
Published by Globes, Israel business news – en.globes.co.il – on March 23, 2021
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