Wise denied US banking license in blow to expansion plans

Wise has been denied a US banking license by the Office of the Comptroller of the Currency (OCC), a significant setback for its expansion ambitions in its largest growth market. The London-founded fintech stated that the decision, which relates to an application submitted over a year ago, would not impact its current US operations.

Wise indicated it plans to submit a new application, citing significant investments made in enhancing its compliance systems, customer checks, and financial crime controls since the original submission. The company also noted that changes in US payment rules meant the initial application route was no longer optimal.

A national banking license would enable Wise to operate under a single federal regulator in the US, simplifying its expansion of products and services, rather than relying on numerous state-level licenses. This development comes months after Wise moved its primary stock market listing to the Nasdaq in New York, a move intended to increase its visibility in what it considers its biggest market opportunity.

The US is a key market for European fintechs, with rivals like Revolut also pursuing banking licenses. A license allows such firms to offer a broader range of banking products directly, reducing reliance on partner banks.