TransferWise set to sign deals with up to 20 banks

TransferWise is in “preliminary talks” with up to 20 banks around the world over partnerships to offer TransferWise’s international payments service within their banking apps. These talks were confirmed as the international currency transfer site announced it has signed its first ever partnership deal with Estonia’s largest domestic bank, LHV, in a deal that will see TransferWise’s service integrated directly into LHV’s mobile app. 
As we reported, Goldman Sachs included TransferWise in its recent “year in review” note, producing a chart titled “an industry ripe for change”, which shows the disruption the start-up is causing for large high street banks such as HSBC, Santander and RBS.

Fintech firm Transferwise in early stage talks to team up with banks in the UK

London fintech firm Transferwise is set to partner up with the banks it has previously accused of “scamming” customers.

The money transfer firm has announced it is in early stage talks with up to 20 banks around the world, including established and challenger banks in the UK, to embed its services in their online banking platforms.

Transferwise has run a series of aggressively anti-bank advertisements accusing big banks of overcharging customers sending money abroad.

Read more: Fintech 100: UK dominates KPMG’s global list of top fintech firms of 2015 with Transferwise, Funding Circle and Atom Bank

The startup firm, valued at $1bn (£650m) in January 2015, has already inked a deal with Estonian retail bank LHV that will see its service added into the bank’s mobile app and online bank early next year.

Transferwise’s co-founders Taavet Hinrikus and Kristo Käärmann are both Estonian.

Hinrikus, also the company chief executive, said: “This partnership is a significant milestone for the whole financial sector.”

Banks are under pressure to update their foreign exchange fees and services due to increased competition from emerging rivals.

Serial entrepreneur Richard Branson poured money into Transferwise in 2014 as part of a $25m second funding round, though In October Virgin Money, part of Branson’s Virgin Group, signed up with rival forex firm World First.