Money transfer company Wise is exploring the possibility of obtaining a UK banking licence after the fintech abandoned its primary listing on the London stock exchange earlier this year.
The firm has approached financial services industry leaders over the past two months regarding positions connected to establishing a banking operation in the UK, according to The Times, as reported by City AM.
The proposals are believed to be in their infancy with no official application submitted.
This development would mirror challenges faced by the company’s fintech counterparts, including digital banking giant Revolut, which encountered numerous obstacles whilst seeking its licence.
City AM reported earlier this year that the neobank was poised to miss its “mobilisation” deadline.
Nevertheless, the fintech has reaffirmed intentions to launch as a complete bank within the next year.
This emerges as the UK banking landscape has grown considerably more competitive over the past decade with the emergence of challenger institutions.
In July, Swedish buy now pay later giant Klarna secured an electronic money institution licence from the Financial Conduct Authority (FCA), positioning the company to rival the UK’s e-commerce leaders.
A Wise move overseas
Wise’s preliminary efforts to become a comprehensive UK bank follow the company delivering a setback to the London Stock Exchange earlier this year.
City officials had anticipated the firm might be considering a FTSE 100 listing, but in June Wise announced it would relocate its primary listing to New York. The fintech attributed the move to the deeper liquidity and opportunity to transition to a major US indices.
This development has dealt a blow to Chancellor Rachel Reeves’ aspirations for a fintech-driven revival of the London stock market.
In an attempt to stimulate more London floats, the Treasury has rolled out a range of policies, including a new listings task force, specifically designed for fintechs as part of its Financial Services Growth and Competitiveness Strategy.
