Palo Alto’s Zuk Gets Go-Ahead to Found New Israeli Digital Bank

Marissa Newman, Bloomberg News

NEW YORK, NY - NOVEMBER 03: CTO of Palo Alto Networks Nir Zuk participates in a panel discussion at the New York Times 2015 DealBook Conference at the Whitney Museum of American Art on November 3, 2015 in New York City. (Photo by Neilson Barnard/Getty Images for New York Times) , via Bloomberg

(Bloomberg) --

Israel’s central bank granted a conditional license for the establishment of the nation’s second digital bank, co-founded by cybersecurity giant Palo Alto Networks Inc.’s Nir Zuk.

The Bank of Israel in a statement on Sunday said it had given initial regulatory approval for Esh Bank Israel Ltd., enabling it to begin setting up operations over the next year and a half.

The bank will be fully digital, have no physical branches, and run with internally developed financial technology, according to the business proposal presented to the Israeli regulator.

Shmuel Hauser, former head of the Israel Securities Authority, is expected to serve as the new bank’s chairman, according to the Bank of Israel.

The announcement came nearly a year after One Zero Digital Bank Ltd. received final approval to begin operations in Israel, becoming the first new bank to operate in the country in 43 years and its first digital bank.

One Zero Digital is controlled by Amnon Shashua, co-founder of the Israel-based autonomous vehicles company Mobileye Inc.