Wise has reportedly been exploring the possibility of becoming a fully licensed UK bank, a move that would mark a step in the fintech’s evolution from its origins as a money transfer service.
It has been alleged that Wise has been in contact with financial services executives over the past two months about roles at the company related to starting a British banking business. Wise has not made a full application to the Bank of England for a licence. At the time of writing, Wise did not confirm that it is in the process of securing a UK banking licence.
However, a UK banking licence would allow Wise to offer regulated deposit accounts and direct access to the country’s payments infrastructure, reducing reliance on third-party providers. It would also position the fintech more competitively against digital banks such as Starling and Monzo.
The timing is significant. The UK neobank market has expanded dramatically over the past decade, with 87% of UK adults using a form of online banking or remote banking. This rapid growth has prompted both domestic challengers and international players to seek stronger footholds in the UK.
Regulatory and strategic considerations
Industry analysts suggest that obtaining a banking licence could offer Wise several advantages. First, it would enable the firm to safeguard customer funds under the Financial Services Compensation Scheme (FSCS), aligning it with consumer protections offered by traditional banks. Second, it could help Wise reduce operational costs by directly connecting to payment schemes such as Faster Payments and CHAPS. Finally, it would allow the fintech to broaden its product offering beyond international transfers and multi-currency accounts, potentially increasing customer retention.
Implications for London’s fintech ecosystem
Recently, the company announced a shift in its primary stock market listing from London to New York. That decision was framed as an effort to access deeper capital markets but raised concerns about the City’s ability to attract and retain high-growth fintechs. By pursuing a UK banking licence, however, Wise would signal that its operational future remains tied to the British market, even as its investor base becomes more international.
