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One Zero digital bank reports $380m valuation

  • April 01, 2023

Israel’s One Zero digital bank, which began operations in the summer, reports that it ended 2022 with over 50,000 customers and NIS 1.2 billion 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 entering the account each month.

Other data released by One Zero show that the average deposit account in the bank is NIS 115,000 and the average loan given is NIS 66,000. Average monthly credit card use is NIS 3,600 and 61% of customers are aged between 25 and 44, 16% between 45 and 54, 11% over 55, and 12% between 18 and 24.

No major revenue has yet been reported, high development expenditure

The bank published a balance sheet extract and additional data, and it is too early for it to have recorded significant revenue. Since being founded, One Zero has raised about NIS 791 million ($245 million dollars) according to a company valuation of NIS 1.39 billion ($380 million), after money. Most of the amount raised, about NIS 577 million ($185 million) was raised last year, and the bank’s equity amounted to about NIS 144 million. After the balance sheet date, February 2023, the bank raised NIS 214 million ($60 million). The bank is expected to raise additional capital to continue to strengthen in the Israeli market and expand into Europe.

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.”

One Zero chairman Shuki Oren added, “Technological efficiency is a necessary condition for a new bank, but there is a need for a distinct advantage that can enable competition against a profitable and strong centralized banking system, and one that will provide significant value to customers beyond the important factor of cost. In order to create a distinction that will allow a real disruption in the banking market, we have harnessed AI technology which allows us to provide our customers with service and products that they do not receive from traditional banks.”

Published by Globes, Israel business news – – on March 30, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

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