Fintech Startup, TransferWise, Sprang From The Investment Feature Launch
TransferWise firm has received a license from a UK financial agency, Market surveillance enabling it to do business in retail investment. TransferWise Company is headquartered in London and started to operate officially under the model of cross-border money transfer (international money transfer). In 2018, it further expanded banking services by offering multi-currency accounts, “borderless, barrier-free”, attached to the debit card. The user of this card has so far kept £ 2 billion ($ 2.5 billion) in this multi-currency account.
Currently, TransferWise is preparing its expansion plans, launching new services that allow users to "passive" invest in venture capital funds from many third-party providers. On Wednesday, they received approval and a UK Financial Authority license to operate their business from their investments.
“About three or four years ago, we saw a new opportunity that all of us, from users to businesses not only send money, but they also receive a big amount from around the world,” Kristo Käärmann said during a video call with CNBC- TransferWise CEO and co-founder.
Kristo Käärmann - TransferWise CEO and co-founder
Käärmann also pointed out that the problem that the system users are facing is finding a way to recover their cash. He also shared that TransferWise wanted to act in a different way than traditional banks, lending customers' deposits - linking with VCs and giving them the best interest rates.
“Unlike depositing money in a savings account in the bank and then taking a very small interest in monthly, quarterly or yearly; This makes the money "inflate" much larger as a miracle. " Käärmann said. TransferWise is not the sole or exclusive fintech company desiring to enter the financial investment, fintech, and peer-to-peer lending industry. There are many other companies, such as Revolut (the world's leading fintech company), Robinhood, eToro have also gained a lot of fame thanks to cryptocurrency transactions, peer-to-peer lending, and stocks at no fees. their fees. Nevertheless, the CEO of Käärmann said that TransferWise did not want to develop the business in the same way as a stockbroker. TransferWise will launch a unique "profitable investment" feature at the end of the fourth quarter of 2020. Although facing many difficulties and just starting to build a market in the UK, they hope to develop this service, turn it out the spearhead and spread it around the world.
"Our opponents are still banks," said Käärmann, TransferWise co-founder.
Although it has only been established for 9 years, since 2011, TransferWise has quickly proven its capabilities by becoming one of the largest fintech startups in the world with a "terrible" valuation of $3,5 billion in 2019.TransferWise has attracted many venture capitalists including Andreessen Horowitz, Peter Thiel's Valar Ventures and Richard Branson so far.
Although 2020 is a severe barrier from the destruction of the nCoV epidemic, TransferWise - the fintech unicorn still hopes to reap the profits it has set in 2020. After six years in operation, the company has made a profit, but the key selling points of the multi-currency debit card are the biggest domestic conversion solution and it comes from the travel potential.
TransferWise has tried very hard and is extremely proud that our customers are the ones who lead our mission. Customers are the ones who help TW pay the fees, pay the salaries of many employees and help TW develop many new products.