In a bid to further solidify its presence in the banking industry, Airwallex mentioned its intention to apply for a UK banking licence and also go after securing a US one by acquiring a bank. According to information cited by the Financial Times, Airwallex seeks to obtain the UK banking licence due to the region’s favourable market conditions for fintech companies, as well as due to the Financial Conduct Authority’s regulatory capabilities.
When it comes to the US, becoming a regulated bank could pose more difficulties considering the region’s regulators and state licences. As per the same sources, the company is most likely to pursue the regulatory approval by acquiring a US financial institution later on. Officials from Airwallex underlined that the company excluded an IPO in the UK, with it being set on a US listing instead. This decision was based on the US market being the most liquid capital market and the most accessible one globally.
Besides seeking licences in the UK and US, Airwallex recently started offering its services, including staff payroll and payments to suppliers in several currencies, in France and Benelux. Currently, the company intends to roll out its solutions in Ireland and Germany.
Just a week before this announcement, Airwallex teamed up with Yuno to work on improving global transactions for businesses. The initiative was set to allow Airwallex to assist Yuno in solidifying its financial service and payment capabilities. On the other hand, the collaboration sought to enable Airwallex to optimise its ability to assist larger enterprises via more scalable cross-border payment solutions.
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