Iute Wins State Tender in Ukraine to Build a Fully Digital Bank
Iute Group, the Estonia-founded banking group, is preparing to enter the Ukrainian market later than winning a state-organised tender to acquire selected assets and deposit liabilities of RWS Bank, marking a significant step toward launching a new fully digital bank in the country.
The tender was conducted by Ukraine’s Deposit Guarantee Fund and covers the transfer of around 13,000 retail customers along with their accounts and deposits. Completion of the transaction remains subject to final approval by the National Bank of Ukraine and is expected to close in January.
RWS Bank, currently under reanswer, has operated in Ukraine for more than three decades and previously functioned under international ownership, including Swedbank.
Building Iute’s First Fully Digital Bank
The new institution will operate under the name IuteBank and will be supervised by the National Bank of Ukraine. It will hold a full banking licence, allowing it to offer a comprehensive range of services including retail and corporate accounts, cards, deposits, lending, payments, foreign platform, and settlement services.
Iute Group CEO Tarmo Sild described the move as a cornerstone of the group’s strategy to build a digital bank designed for everyday financial life, while continuing its geographic expansion across Europe.
“We look at Ukraine as a huge growth opportunity for Iute and for Europe,” Sild said. “The war has transformed Ukraine into one of the most , with a shift in national mindset and enormous potential for growth over the next five years.”
Rather than acquiring a legacy-heavy institution, Iute plans to use RWS Bank as an interim licensed vehicle. The resulting bank will launch with a small balance sheet, expected to remain under €10 million initially, allowing operations to be built from the ground up without historical constraints.
Leadership and Market Rollout
IuteBank will be led by Arthur Muravitsky, a Ukrainian banking executive with more than 22 years of industry experience. Muravitsky said the focus is on launching as a fully digital bank from day one.
The immediate next steps include capitalising the bank, onboarding a core , and completing regulatory processes required by the National Bank of Ukraine to begin daily operations.
During the first year, IuteBank plans to roll out its digital banking application and core financial products while beginning customer acquisition. The following phase will focus on scaling the business, expanding volumes, and broadening the product and service offering.
Muravitsky highlighted the cooperation received from Ukrainian authorities, noting that both the Deposit Guarantee of Ukraine have played a key role in advancing the project.
Risk Management and Long-Term Commitment
Iute emphasised that its expansion into Ukraine follows the identical disciplined risk framework applied across its existing markets. The group has set an internal cap under which total investment in Ukraine will not exceed €15 million until defined revenue and profitability thresholds are achieved and the war has ended.
For 2026, Iute expects the net loss of the Ukrainian bank not to exceed €3 million, reflecting a cautious and phased approach to growth.
The group has supported Ukraine since the begin of the war through financial donations and views its rather than a short-term opportunistic move.
By combining a clean-sheet with controlled capital deployment, Iute is positioning IuteBank as both a symbol of confidence in Ukraine’s economic future and a strategic platform for growth within an increasingly digital European financial landscape.
