Iute Group Set to Acquire a Banking License in Ukraine
The Estonia-based digital-first banking group, Iute Group, has announced its intentions to acquire a banking license currently held by a bridge bank in Ukraine. This move comes as part of Iute Group’s broader strategy to expand its digital banking services in a disciplined and responsible manner. The acquisition is expected to be funded using the existing liquidity within Iute Group. This news follows the recent approval from the National Bank of Ukraine, authorizing Iute Group to establish a regulated bank entity in the country.
Details of the Acquisition
As part of the acquisition, there will also be a “selective transfer of low-risk assets” and associated retail deposit liabilities amounting to approximately €4m ($4.6m) from RWS Bank. The assets being transferred primarily consist of government bonds and cash. No loan portfolio or related credit risk is included in the transaction. Furthermore, around 13,000 retail customers, along with their accounts and deposits, are expected to be transferred as part of the deal. However, no branch network is part of the takeover.
The Ukrainian Market Entry
The transaction is part of an agreement with Ukraine’s state-owned Deposit Guarantee Fund and will underpin Iute Group’s entry into the Ukrainian market. The company estimates that the net loss from its Ukrainian operations in 2026 will not surpass €3m. Following the completion of the deal, Iute Group’s Ukrainian banking entity will become the “legal successor to selected assets and deposit liabilities” transferred from RWS Bank.
Leadership and Future Plans
Arthur Muravitsky has been appointed to head the new operation. Muravitsky brings over 22 years of experience in Ukraine’s financial sector and has previously held senior positions at several local banks. Initial priorities for the Ukrainian entity include securing adequate capital, assembling a management team, and preparing for the launch of digital services. The bank will operate under the IuteBank brand.
Iute Group CEO Tarmo Sild expressed, “This step is being taken to support our long-term objective of expanding digital banking services in a disciplined and responsible manner. Establishing a fully digital bank in Ukraine through the selective transfer of a banking license and low-risk assets would allow us to expand our ecosystem in a disciplined and risk-controlled manner. The intended structure of the transaction is designed to participate in long-term growth potential while maintaining clearly defined capital and loss limits.”
This strategic move by Iute Group signals the growing trend of digital-first banking operations and the increasing attractiveness of the Ukrainian market for international fintech players. By leveraging the existing banking infrastructure and focusing on low-risk assets, Iute Group aims to establish a strong foothold in the Ukrainian banking sector while minimizing potential risks.
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