Wise Is Forcing Traditional Players to Justify Their Low-Rate, High-Fee Models
Hey Digital Banking Fanatic!
Wise launched its UK Current Account on March 30, offering a 3.26% variable rate on GBP balances, as it targets £250 billion sitting in zero-interest accounts.
This marks another milestone in the digital banking drive to disrupt traditional banks, capitalizing on advantages that stretch beyond everyday payments.
Wise served 3 million active people and businesses in the UK last year, holding over £8bn in their accounts.
“Banks haven’t kept pace with what customers expect for their current account. People shouldn’t need separate accounts for home and abroad,” said Nilan Peiris, Chief Product Officer at Wise.
Wise doesn’t need to be a bank to offer yield because it operates as an electronic‑money institution, using partner banks and regulated investment vehicles to generate returns on customer balances.
In the UK, Wise has held e-money institution authorisation from the FCA since 7 June 2018, which allows it to issue electronic money and provide payment services.
Stay tuned for more moves shaping the future of digital banking 👇 Catch you in your inbox tomorrow!
Cheers,
INSIGHTS
🇵🇱 Poland has ~26M digital banking users, with over ~54.7M bank accounts.
~2 accounts per active user. Let's dive in👇
NEWS
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