iute wins Ukraine’s government tender to establish a digital bank

• Approximately 13,000 customers will be transferred from RWS Bank, a Ukrainian bank with a history spanning over 30 years, previously owned by the Swedbank Group.
• iuteBank will be built from the ground up as a fully licensed digital bank, operating under the supervision of the National Bank of Ukraine.
• iute will cap total investments in Ukraine at 15 million euros, and the bank’s estimated net loss in 2026 will be limited to 3 million euros.

iute Group, a banking group founded in Estonia, will establish a legal entity in Ukraine and is preparing to enter the market by launching a digital bank, a process contingent upon obtaining approvals from regulatory authorities.

iute won the state-organized auction in Ukraine, conducted through the Deposit Guarantee Fund, to acquire certain assets and deposit-related liabilities from RWS Bank.

The completion of the transaction, which includes the transfer of approximately 13,000 individual customers along with their accounts and deposits, is subject to final approval by the National Bank of Ukraine and is expected in January. RWS Bank, currently in the process of resolution, is a Ukrainian bank with a history spanning over 30 years, during which time it has been part of various international banking groups, the best known being Swedbank.

Tarmo Sild, CEO of iute Group, stated that this initiative is part of the group’s strategy to develop a digital bank for everyday financial services, and that geographic expansion represents a natural step in iute’s evolution. The decision to enter the Ukrainian market is based on confidence in the country’s future and its integration into the European economic area.

“We view Ukraine as a major growth opportunity for iute and for Europe. The war has accelerated the digitization of the financial market, as the country has the sixth-largest population on the continent and a profoundly changed national mindset. War changes many things, and I see Ukraine as a growth hub over the next five years, thanks to the courage of this nation”, said Tarmo Sild.

“The completion of the transaction will add Ukraine to our list of markets and mark the launch of the first fully digital bank bearing the iute name, free from legacy structures or issues. iuteBank is being built from the ground up by acquiring an intermediary entity holding a banking license, along with selected assets and the corresponding deposit liabilities from RWS Bank”, explained Tarmo Sild. According to the CEO, this approach will result in a small initial balance sheet for the bank, below the threshold of 10 million euros, explained Tarmo Sild.

The bank will be named iuteBank and will be supervised by the National Bank of Ukraine. It will operate under a full banking license, which will allow it to offer basic banking services, including accounts for individual and corporate clients, cards, deposits, loans, payment services, foreign exchange operations, as well as cash and settlement services.

iuteBank will be led by Arthur Muravitsky, a manager with over 22 years of experience in the Ukrainian banking sector. According to Muravitsky, the focus is on building a fully digital bank from day one.

The next steps involve capitalizing the bank, forming the core team, and meeting the compliance requirements set by the National Bank of Ukraine to launch day-to-day operations. “From the very beginning, this process has benefited from the support of the Deposit Guarantee Fund and the National Bank of Ukraine, whose cooperation has been essential to the project’s progress”, Muravitsky said.

“In the first year, the focus will be on launching the digital app and our core financial products, while simultaneously initiating the customer acquisition process. The next phase will focus on scaling the business by increasing volumes and expanding our portfolio of products and services”, added Muravitsky.

iute emphasizes that its expansion into Ukraine follows the same rigorous risk management approach applied in all markets where it operates. “Risks in Ukraine are treated the same way as in any other country. Specifically, we have set an internal threshold whereby our total investments in Ukraine will not exceed 15 million euros until certain revenue and profitability targets are met and until the war ends. For 2026, we estimate that the bank’s net loss will not exceed 3 million euros”, said Sild.

iute Group and its subsidiaries have supported Ukraine since the start of the war, including through financial donations, and view entering the Ukrainian market as a long-term European investment.

iute Group is a digital banking group focused on financial services for everyday use in Southeast Europe. Founded in 2008 and headquartered in Estonia, iute serves customers in Albania, Bulgaria, Moldova, North Macedonia, and Ukraine. Through the Myiute app and its local operations, iute offers digital financial services, including payments, banking, financing, and insurance brokerage. iute Group finances its operations through equity, deposits, and covered bonds, listed on the Regulated Market of the Frankfurt Stock Exchange and the Nasdaq Baltic Main List.