Wise mulls UK banking licence after ditching London listing
Money transfer firm Wise is looking into a UK banking license following the fintech ditching its primary listing on the London stock market earlier this year.
The company has reached out to financial services heavyweights in the last two months regarding roles related to starting a banking business in the UK, according to The Times.
Plans are understood to be at a very early stage with no formal application having taken place.
The move would follow a headache for the firm’s fintech peers, including digital banking juggernaut Revolut which faced a series of struggles in its pursuit of a licence.
CityAM reported earlier this year the neobank was set to miss its “mobilisation” deadline. However, the fintech has reiterated plans to launch as a fully fledged bank in the coming year.
It comes as the UK banking scene has become significantly more crowded over the last decade with the rise of challengers.
In July, Swedish buy now pay later giant Klarna received an electronic money institution licence from the Financial Conduct Authority (FCA), setting the firm up to compete with the UK’s e-commerce titans.
A Wise move overseas
Wise’s exploratory steps to become a fully-fledged UK bank follows the firm dealing a blow to the London Stock Exchange earlier this year.
City officials had hoped the firm would be eyeing a FTSE 100 listing but in June Wise said it would transfer its primary listing to New York.
The fintech cited the deeper liquidity and opportunity to move to a major US indices behind the move.
The move dented Chancellor Rachel Reeves’ hopes of a fintech-powered London stock market revival.
The Treasury launched a fleet of policies, including a new listings task force, catered towards fintechs in its Financial Services Growth and Competitiveness Strategy in hopes of galvanising more London floats.