Wise has announced plans to expand its number of financial service offerings in Australia after being granted an Australian Financial Services License.
👉 Background: Wise, previously known as TransferWIse is the London-based fintech company which disrupted the global foreign-exchange market from old-school companies like Western Union. Wise launched in Australia in 2016 and has grown to over 1 million personal and business customers.
👉 What happened: Now, Wise has announced plans to expand its number of financial service offerings in Australia after being granted an Australian Financial Services License. Wise plans to launch a new investment product for Australian customers called “Assets”.
👉 What else: The "Assets" product is effectively a money market fund, which allows customers to invest their money sitting in Wise across multiple currencies, while it sits idle.
💡Money market funds are a type of mutual fund that invests in short-term, low-risk financial assets. Think: government bonds, treasury bills, and high-quality corporate debt.
💡Because they’re pretty stable and liquid, they have become one of the safest places to park cash outside of a savings account.
💡Right now, Wise’s Australian customers hold over $1 billion on its platform, so Wise is finding new ways to monetise its service of holding that money. Customers get to invest their money in low-risk short-term products, and Wise gets to take a clip in the process.
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