32 C
Dhaka
Friday, May 27, 2022

TransferWise sets to launch an investments feature

The co-founders Taavet Hinrikus and Kristo Kaarmann/Photo: Collected

A London-based online money transfer service startup company TransferWise has obtained a license from the U.K. markets watchdog to offer retail investment services to clients.

Started in 2010 as a means of sending money internationally online, TransferWise in 2018 made a deeper push into banking by offering a “borderless” multi-currency account tied to a debit card. Users have so far deposited £2 billion ($2.5 billion) with the account.

Currently, according to the firm, it possesses 8 million users globally and processes £4 billion worth of transactions each month.

Now the company plans to launch a service that lets users of the account invest passively in investment funds from third-party providers.

The company said that it had received permission from the U.K.’s Financial Conduct Authority to deal in investments, reports CNBC.

“About three or four years ago we saw that people — and more so businesses — are not only sending money, they’re also receiving money internationally,” TransferWise CEO and co-founder Kristo Kaarmann told in a video call.

“The problem the platform’s users have had lately is finding a way to make a return on their cash and the company wanted to take a different approach to traditional banks, which lend out customer deposits and charge interest, added Kaarmann.

TransferWise isn’t the only fintech start-up looking to take on the investment industry. Plenty of other companies, such as Robinhood, Revolut and eToro, have gained popularity thanks to their zero-fee stock and cryptocurrency-trading features.

The company  expects to launch its first investing feature in the next 12 months. The firm is starting with the U.K. but  hopes to roll the product out internationally later down the line.

 

Related Articles

ISO 2001

ISO 27002: 2022 Implementation vs Reality

0
After almost a decade, ISO27001: 2013 is going to publish its new iteration of ISO27001:2022 in second (2nd) Quarter this year1. But prior to...
Deepfakes: The Synthetic Media I want to believe

Deepfakes: The Synthetic Media I want to believe

0
What Are Deepfakes? A deepfake is a sort of "synthetic media," which refers to material (such as images, audio, and video) that has been modified...
The power of API platforms

The power of API platforms brings the open banking promise into sharper focus

0
Open banking is a global phenomenon whose merits are felt in virtually every time zone, including those in the Asia-Pacific region. In contrast to...
Blockchains Gaming and Collusion

“Blockchains: Gaming and Collusion- A Reading in Political Economy”:  Futuristic Exploration with Fact-based Analysis

0
In this digital age, it has become quite common for us to constantly remain mesmerized by fascinating technologies.  However, deeper thoughts about those technologies,...
Scams with QR codes

Scams with QR codes: a fresh spin on an old tactic

0
QR codes have become a common sight in our everyday lives. Mainly because of touchless communication the usage of QR codes in various places...
Protect Online Privacy with Browser Security

Protect Online Privacy with Browser Security

0
Every day we use web browser most often, likes of Google Chrome, Mozilla Firefox, Apple Safari, Microsoft Edge, Opera, etc. The browser companies try...