Jerusalem, Israel – November 26, 2025 — Jerusalem’s burgeoning fintech sector is set to mark a milestone in inclusive finance as the Jerusalem Fintech Hub introduces a blockchain-based microloan platform tailored for entrepreneurs in East Jerusalem. The initiative, which opens for applications on December 1, is backed by an initial fund of NIS 50 million, signalling a significant commitment to fostering economic opportunity and innovation in one of the city’s most dynamic yet underserved communities.
The platform, developed in collaboration with local financial institutions and technology partners, leverages blockchain technology to streamline the microloan process, enhance transparency, and build trust among borrowers and lenders. By utilising distributed ledger systems, the platform ensures that loan agreements, repayments, and credit histories are securely recorded and easily accessible to both entrepreneurs and financial backers.
“Access to fair and transparent credit is a cornerstone of economic development,” said Dr. Lior Ben-David, Director of the Jerusalem Fintech Hub. “Our goal is to empower East Jerusalem’s entrepreneurs with the tools they need to grow their businesses and contribute to the city’s vibrant economy. Blockchain technology allows us to do this with unprecedented security, efficiency, and inclusivity.”
The NIS 50 million fund, sourced from a consortium of public and private investors, is expected to support over 1,000 micro and small businesses in its first year. The fund’s structure prioritises first-time borrowers and women-led enterprises, aiming to address long-standing gaps in access to capital within the East Jerusalem business ecosystem.
For many local entrepreneurs, the new platform represents a turning point. Amal Jaber, owner of a small artisanal bakery in the Old City, expressed optimism: “Securing a loan has always been difficult because traditional banks require guarantees we cannot provide. With this new system, everything is clear and fair. It gives us hope and the ability to plan for the future.”
The application process has been designed for accessibility, with support available in Arabic, Hebrew, and English. Entrepreneurs can submit their business plans and loan requests through a mobile-friendly portal, where blockchain-backed smart contracts automate approvals and disbursements based on transparent criteria. This automation reduces processing times from weeks to just a few days, a critical improvement for small businesses needing quick access to funds.
In addition to financing, the Jerusalem Fintech Hub is offering a suite of business development services, including mentorship, digital literacy workshops, and networking events. These resources aim to equip entrepreneurs with the skills and connections necessary to thrive in a rapidly evolving digital economy.
The project has garnered support from municipal leaders and community organisations alike. Deputy Mayor Hana El-Khatib praised the initiative: “This platform is not just about loans—it’s about building bridges, fostering trust, and creating lasting economic partnerships across Jerusalem. It sets a new standard for inclusive growth in our city.”
Industry observers note that the platform’s use of blockchain technology reflects a broader trend in Israeli fintech, where innovation is increasingly focused on practical solutions for real-world challenges. By combining advanced technology with a deep understanding of local needs, the project positions Jerusalem as a leader in socially responsible fintech.
The platform’s launch comes at a time of renewed momentum in Israel’s fintech landscape, with the sector attracting significant investment and international attention. Over 600 fintech companies now operate in Israel, and the country’s expertise in cybersecurity and digital infrastructure has made it a global reference point for financial innovation.
Looking ahead, the Jerusalem Fintech Hub plans to expand the platform’s reach, with future phases including peer-to-peer lending options and integration with regional e-commerce networks. The team is also exploring partnerships with educational institutions to offer financial literacy programmes for young entrepreneurs.
For East Jerusalem’s business community, the new microloan platform represents more than just access to capital—it is a testament to the city’s commitment to shared prosperity and technological progress. As the first loans are set to be disbursed in December, anticipation is high that this initiative will spark a new wave of entrepreneurship, job creation, and economic resilience in the heart of Jerusalem.
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Image Credit: Photo by sandercrombach on Unsplash
