Wise (LON:WISE), a global Fintech known for its focus on international transfers, is reportedly contemplating a significant shift in its business model by exploring the possibility of becoming a fully licensed bank in the United Kingdom.
According to recent reports, the company has initiated discussions with experienced financial services executives over the past two months to explore roles in a potential UK banking operation.
While these plans remain in their early stages, with no formal application for a banking license submitted yet, the move signals Wise’s aim to deepen its integration into the global financial ecosystem.
Founded in 2011 as TransferWise by Estonian entrepreneurs Taavet Hinrikus and Kristo Käärmann, Wise has grown into a key player in the fintech sector, processing £9 billion in cross-border transactions monthly and serving over 16 million customers worldwide.
The company rebranded to Wise in 2021 to reflect its expanded offerings, which now include multi-currency accounts and debit cards, resembling traditional banking services.
However, Wise currently operates as an electronic money institution under the UK’s Financial Conduct Authority (FCA), not as a licensed bank.
This status restricts it from lending customer funds and requires it to safeguard client money in separate accounts, unlike banks that can use deposits for lending.
A UK banking license would mark a pivotal evolution for Wise, enabling it to offer interest-bearing accounts, issue loans, and access the UK’s payment infrastructure directly, such as the Faster Payments system and Bacs.
This could reduce reliance on third-party banks, streamline operations, and potentially lower costs for customers.
John Cronin, a banking analyst at SeaPoint Insights, noted that a banking license could allow Wise to convert safeguarded funds into deposits for lending, creating new revenue streams.
Additionally, it would bring Wise under the Financial Services Compensation Scheme (FSCS), offering deposit protection up to £85,000 per customer, aligning it more closely with traditional banks.
This potential move aligns with Wise’s broader strategy to build its own global payment infrastructure.
The company has already made strides in this direction, becoming the first non-bank to connect directly to the Bank of England’s Faster Payments system in 2018 and securing settlement accounts in countries like Hungary and the Philippines.
In June 2025, Wise applied for a national trust bank charter in the United States, aiming to settle dollar transactions directly with the Federal Reserve, bypassing intermediaries.
This US application, coupled with plans to shift its primary stock listing to a US exchange while maintaining a secondary listing in London, underscores Wise’s global plans.
The path to obtaining a banking license is not without challenges.
As widely reported, other Fintechs like Revolut faced significant hurdles during a three-year process to secure a UK banking license, highlighting the regulatory and compliance demands involved.
Wise would need to invest in risk management, compliance infrastructure, and capital reserves to meet the requirements of the FCA and the Bank of England.
Despite these challenges, the potential benefits—such as earning interest on customer balances and offering a broader range of financial products—could position Wise as a competitor in the digital banking space, alongside players like Monzo and Starling.
Wise’s exploration of a UK banking license comes at a time of increasing competition in the fintech sector and evolving payment infrastructures globally.
The Bank of England’s planned upgrades to its retail payments systems, as noted by Governor Andrew Bailey, could further incentivize Wise’s move.
By securing direct access to sterling-based systems like Chaps, Wise could enhance its service offerings and reduce operational complexities.
As Wise navigates this potential transformation, its focus remains on low-cost transfers, and customer-centric products.
While the company has declined to comment on “rumors or speculation,” the prospect of Wise becoming a fully-fledged bank could reshape its role in the financial sector.
