Estonia’s Iute Group plans to launch a fully digital bank in Ukraine
Photo: Iute Group

Estonian banking group Iute Group plans to establish a new digital bank in Ukraine based on the bankrupt RwS Bank, the company’s press service said on Tuesday.

The group expects to receive approval from the National Bank of Ukraine (NBU) by the end of January to acquire Iute Bank, a transitional bank created to replace RwS Bank.

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The new lender will operate under the brand name IuteBank..

Iute Group is a digital banking group focused on everyday financial services in Southeast Europe. Founded in 2008 and headquartered in Estonia, the company operates in Albania, Bulgaria, Moldova, North Macedonia, and Ukraine. The group finances its activities through equity capital, customer deposits, and secured bonds traded on the regulated market of the Frankfurt Stock Exchange and the main list of Nasdaq Baltic.

"The completion of this transaction will allow us to enter the Ukrainian market and add the first fully digital bank to the group, operating under our brand and without any legacy systems or practices," said Tarmo Sild, CEO of Iute Group."IuteBank is being created from scratch: we are acquiring a transitional structure with a banking license, carefully selected assets, and corresponding deposit liabilities originating from RVS Bank."

According to Sild, this model will ensure a limited initial balance sheet, with total assets capped at up to €10 million.

IuteBank will be headed by Ukrainian banker Artur Muravitsky, who has more than 22 years of experience in the financial sector. He previously served as Deputy Chairman of TAScombank and as Chairman of Finance Bank.

"During the first year, we will focus on launching a digital application and core financial products, alongside the start of customer acquisition," Muravitsky said. "The next stage will concentrate on scaling the business by increasing volumes and expanding the product range."

Iute Group has set an internal investment cap of €15 million for its operations in Ukraine until the bank reaches defined profitability targets and the war ends. The bank’s projected net loss in 2026 is expected to remain below €3 million.

  • RwS Bank was established in 2015 on the basis of the bankrupt Omega Bank and was controlled by the UBG Group, which is linked to former Ukrainian MP Ruslan Demchak. As of early 2025, 99% of the bank’s shares were owned by Oleksandr Stetsiuk, with the remaining 1% held by Demchak’s daughter, Kateryna. RwS Bank’s market share stood at just 0.04%.
  • According to its financial statements, the bank reported losses exceeding UAH 200 million in the first nine months of 2025. Its equity nearly halved, while total assets declined from UAH 4.51 billion to UAH 1.51 billion. The bank’s problems became evident in late 2024, when it began rapidly losing both its loan and deposit portfolios.