Iute Group, a banking group based in Estonia, will set up a legal entity in Ukraine and is preparing to enter the market by launching a digital bank, subject to regulatory approvals.
Iute won a tender organized by the state in Ukraine through the Deposit Guarantee Fund to acquire certain assets and deposit liabilities of RWS Bank.
Completion of the transaction, which includes the transfer of approximately 13,000 retail customers along with their accounts and deposits, is subject to final approval from the National Bank of Ukraine and is scheduled for January. RWS Bank, which is currently in the process of settlement, is a Ukrainian bank with more than 30 years of history, during which it has been part of various international banking groups, the most prominent of which is Swedbank.
Tarmo Sild, CEO of Iute Group, said that this initiative is part of the group’s strategy to develop a digital bank for everyday financial services, and geographical expansion represents a natural stage of Iute’s development. The decision to enter the Ukrainian market is based on confidence in the country’s future and its integration into the European economic space. “We see Ukraine as a big growth opportunity for Iute and Europe. The war has accelerated the digitalization of the financial market, the country has the sixth largest population on the continent and a profoundly changed national mentality. War changes many things and I see Ukraine as a growth pole in 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 will mark the launch of the first fully digital bank that goes by the name Iute and is not affected by legacy structures or issues. IuteBank is being created from scratch by acquiring an intermediary organization with a banking license, together with certain assets and related deposit liabilities from RWS Bank,” explained Tarmo Sild. According to the CEO, this approach will result in the bank’s initial balance sheet being small, less than €10 million.
The bank will be called IuteBank and will be supervised by the National Bank of Ukraine. It will operate under a full banking license, which will allow it to provide basic banking services, including retail and corporate accounts, cards, deposits, loans, payment services, currency exchange operations, as well as cash and settlement services.
IuteBank will be headed by Artur Muravitsky, a manager with over 22 years of experience in the Ukrainian banking sector. According to Muravitsky, the focus from day one will be on creating a fully digital bank.
The next stages are aimed at capitalizing the bank, building the core team and meeting the National Bank of Ukraine’s compliance requirements to start current operations. “From the very beginning, this process has had the support of the Deposit Guarantee Fund and the National Bank of Ukraine, whose cooperation has been critical to moving the project forward,” Muravitsky said.
“The first year will focus on launching the digital app and core financial products, as well as starting the customer acquisition process. The next stage will focus on expanding the business by increasing volumes and expanding the portfolio of products and services,” Muravitsky added.
Iute emphasizes that its expansion into Ukraine follows the same rigorous approach to risk management that is applied in all markets where it has a presence. “Risks in Ukraine are treated in the same way as in any other country. Specifically, we have set an internal threshold that our total investment in Ukraine will not exceed €15 million until certain revenue and profitability targets are met and the war is over. For 2026, we estimate that the bank’s net loss will not exceed €3m,” Sild said.
Iute Group and its subsidiaries have supported Ukraine since the beginning of the war, including through financial donations, and see entering the Ukrainian market as a long-term European investment.
Iute Group is a digital banking group specializing in financial services for everyday use in Southeastern Europe. Founded in 2008 and headquartered in Estonia, Iute serves customers in Albania, Bulgaria, Moldova, Northern Macedonia and Ukraine. Through the Myiute app and its local divisions, Iute provides digital financial services including payments, banking, financing and insurance intermediation. Iute Group finances its operations with equity, deposits and guaranteed bonds listed on the regulated market of the Frankfurt Stock Exchange and on the main list of Nasdaq Baltic.
