Ogen is seeking a license to establish Israel's first non-profit bank
Israeli social credit organization Ogen has submitted an official application to the Bank of Israel to establish the country’s first nonprofit bank. The project, developed in partnership with credit cooperative Ofek, aims to introduce a banking model based on transparency, fairness and returning surplus revenues to customers.
A banking model built around fairness
According to Ogen, the future bank would offer the same interest rate to all customers, regardless of their identity or financial circumstances.
The model could include more favorable financial terms, financial advice and support, as well as easier access to credit for people facing economic difficulties.
Ogen’s ambition goes beyond creating another bank. The organization says it wants the model to increase competition in Israel’s banking sector and encourage financial institutions to adopt greater transparency and accountability.
“Submitting this application to the Bank of Israel marks the beginning of a real revolution in the way we think about banking in Israel,” said Sagi Balasha, CEO of the Ogen Group.
More than NIS 1 billion in capital
Ogen says it is entering the licensing process from a strong financial position. The group now has more than NIS 1 billion in capital and aims to reach NIS 792 million in equity by the end of 2026.
The proposed bank would be subject to the same regulatory requirements as other licensed banks and would operate under the supervision of the Bank of Israel, with advanced technological infrastructure.
Founded more than three decades ago, Ogen provides interest-free or subsidized loans to individuals, small businesses and nonprofit organizations. Its funding comes from philanthropic donations, investor deposits, social impact bonds and bank credit lines.
The organization also provides financial and professional support to its beneficiaries.
With the banking project, Ogen aims to take the next step in its development, moving from a social credit provider to a regulated banking institution while maintaining a structure whose purpose is not to generate returns for shareholders.
The application will now be reviewed by the Bank of Israel, which will assess the business plan, the project’s financial strength and its compliance with regulatory requirements before deciding whether to grant a banking license.
Caroline Haïat
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