TransferWise gets nod to offer investment services in UK
[BENGALURU] London-based money transfer startup TransferWise said on Tuesday that it had been granted permission by the UK's financial watchdog to offer retail investment services in Britain.
The company said it expects to offer its first investment product there over the next year, one that will enable customers to invest money stored in their multi-currency accounts into affordable funds by established providers.
Money held as investments of a value up to £85,000 (S$147,000) will be protected under the Financial Services Compensation scheme, the company said.
The move into investment services makes TransferWise the latest financial technology startup to branch out into offering a wider range of financial products. Online investment managers Betterment and Wealthfront recently started offering cash or checking accounts, while student lender SoFi expanded into offering stock trading.
Founded in 2011, TransferWise is one of Europe's most well-known financial technology startups. It has over eight million customers worldwide and processes £4 billion in cross-border transactions every month. It gained popularity among consumers because it offers a more user-friendly and less costly alternative to banks for international transfers.
Since 2017 it has offered multi-currency accounts which allow customers to store money in 54 different currencies. Customers are increasingly using the product as an alternative to international bank accounts and they have £2 billion in deposits with the services, the company said.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
"We're seeing people use the account as an alternative to setting up multiple bank accounts abroad," Kristo Käärmann, co-founder and chief executive of TransferWise, said in a statement. "That means they're holding more money in their borderless accounts, and for longer."
Adding investment features will enable customers to generate potential returns on those deposits, TransferWise said.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Startups
Vietnam education startup Prep bags US$7 million in Series A funding
Cruise operator Viking prices IPO within range to raise US$1.54 billion: source
Ninja Van axes more than 20 employees in tech team in Singapore
Temasek-backed PsiQuantum to build first commercial quantum computer
Fast-fashion giant Shein wants to sell skincare, toothpaste and toys, too
GoTo narrows Q1 loss to 420 billion rupiah with TikTok deal, cost cuts