Israel’s One Zero bank halts expansion plans in Italy, lays off employees due to war
One Zero to let go 20 of its 350 staff; postpones plan to create digital bank with Italy’s Banca Generali due to unfavorable geopolitical environment
Sharon Wrobel is a tech reporter for The Times of Israel.
One Zero Digital Bank Ltd., set up by serial tech entrepreneur Amnon Shashua, has decided to freeze its overseas expansion plans, including the launch of a digital bank in Italy, and is laying off about 6 percent of its workforce due to the uncertain environment during the ongoing war with the Hamas terror group.
“Before the war, we started with the bank’s plans to expand abroad… This is part of the business plan we outlined from day one, in which we invested to develop technology to support the global expansion, in various languages and multiple currencies,” One Zero CEO Gal Bar Dea wrote in a letter to employees seen by The Times of Israel. “The uncertainty around the war situation has led to a halt on the progress for the launch until calm and security stability are restored.”
One Zero will “focus at this stage on continuing the bank’s growth in Israel and reaching profitability” by the end of 2025, Bar Dea said.
One Zero is a fully digital bank and the first new bank in Israel in over 40 years. The bank was founded by Shashua, also the founder of autonomous driving systems company Mobileye (an Intel subsidiary), and was approved to begin operating by the Bank of Israel in 2019.
Earlier this year, One Zero entered into a memorandum of understanding to create a joint venture with Italy’s Banca Generali to establish a digital bank in the country. The plan requires One Zero to apply for a license as an Israeli bank to serve Italian customers.
“We chose Italy as the first country to launch new operations and partnered with well-known international partners,” said Bar Dea. “This plan remains intact, and we are committed to it, [but] we cannot ignore the reality imposed on us.”
“The shareholders, the board, and the management—all of us—are hoping for days of peace and the resumption of the global expansion shortly after the security situation stabilizes,” he added.
The digital bank also announced that it will lay off about 20 of its 350 workers to streamline some of its operations.
“During a period of war and uncertainty, similar to many organizations at this time, we must act responsibly and adjust the organization’s resources,” Bar Dea said in the letter. “The geopolitical and economic environment requires us to continue reducing expenses and adapting organizational resources to bring the bank to profitability according to the business plan.”
Bar Dea shared that in the first half of 2024, One Zero’s revenues grew by 150% compared to the same period last year, while expenses declined by 20%. Non-interest income from subscription fees, trading fees, and foreign currency increased fivefold and the bank’s loan portfolio grew by 75% to NIS 312 million ($83 million), during the same comparative period. Deposits from the public rose by 62% in the first six months of the year versus the first half in 2023 to NIS 2.34 billion.
One Zero was established as an independent bank to compete with the nation’s five largest banking groups, which today dominate the market. In 2019, it became the first to receive a banking license in Israel in over 43 years.
