Wise Explores UK Banking License as Part of Broader Expansion Strategy
LONDON – International tech firm Wise is considering applying for a full banking license in the United Kingdom, a move that would allow it to directly access the UK’s payment infrastructure and potentially reduce costs, according to a report. This advancement comes as Wise concurrently pursues expansion in the United States with an application to become a national trust bank and plans to move its primary stock listing to a U.S. exchange.
Wise, known for its cross-border payment services, currently relies on third-party banks for clearing and settlement. Obtaining a banking license would enable the company to convert safeguarded funds into deposits, which could then be used for lending opportunities. “they could potentially look to convert the funds they safeguard into deposits, which they could then recycle into lending opportunities,” said John Cronin, a banking analyst at SeaPoint Insights.”A banking license would give them direct access to the U.K.’s payment infrastructure, enabling them to reduce their reliance on third-party banks for clearing and settlement, potentially reducing costs and operational complexity.”
The potential move builds on Wise’s recent efforts to gain greater control over its financial infrastructure. in June,the company filed an application to establish a national trust bank in the United states,which would allow it to bypass intermediary banks and settle dollar payments directly with the Federal Reserve,potentially accelerating transfers and lowering expenses.
alongside these banking initiatives, wise announced in June its intention to shift its primary stock listing to a U.S. exchange while maintaining a secondary listing on the London Stock Exchange (LSE). According to Wise co-founder and CEO Kristo Käärmann, the dual listing is expected to deliver “substantial strategic and capital market benefits,” including increased visibility in the U.S. – Wise’s largest market – and improved access to capital. “A dual listing would also enable us to continue serving our U.K.-based owners effectively, as part of our ongoing commitment to the U.K,” Käärmann stated.
