Wise is reportedly considering becoming a fully-fledged bank in the UK.
The company has spoken with experienced financial services executives over the past two months about roles in a potential banking business, The Times reported on Monday (1 September).
The plans remain in their early stages, as Wise has not yet applied for a banking license.
A spokesperson for Wise said the company does not comment on “rumours or speculation.”
Founded in 2011 as TransferWise, the company rebranded to Wise in February 2021 to reflect the expansion of its services beyond money transfers, including bank-like offerings such as debit cards and multi-currency accounts.
However, Wise is not a licensed deposit taker and operates under electronic money rules, meaning customer funds cannot be used for lending and must be ring-fenced, the report said.
John Cronin, a banking analyst at SeaPoint Insights, told The Times it is “entirely plausible” that Wise would seek to become a fully-fledged bank.
“They could potentially look to convert the funds they safeguard into deposits, which they could then recycle into lending opportunities,”
he said.
“A banking license would give them direct access to the UK’s payment infrastructure, enabling them to reduce their reliance on third-party banks for clearing and settlement, potentially reducing costs and operational complexity.”
In June, Wise applied to become a national trust bank in the US, a move that would allow it to bypass intermediary banks and settle dollar payments directly with the Federal Reserve, potentially reducing costs and accelerating transfers, the report said.
Also in June, the company announced plans to move its primary listing to a US stock exchange while maintaining a secondary listing on the London Stock Exchange (LSE).
“This would bring substantial strategic and capital market benefits,”
Wise co-founder and CEO Kristo Käärmann said at the time.
“These include helping us drive greater awareness of Wise in the US, the biggest market opportunity in the world for our products today, and enabling better access to the world’s deepest and most liquid capital market. A dual listing would also enable us to continue serving our UK-based owners effectively, as part of our ongoing commitment to the UK.”
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