Transferwise, one of the few digital banks to make a profit, is about to open a business in Switzerland. What are the plans of the British bank for the Swiss market?
London-based digital bank Transferwise is set to open up shop in Switzerland. The company has founded a Swiss unit based in Baar, near Zug – incidentally the heart of Switzerland’s so-called Crypto Valley. The new company’s purpose is to prepare and develop Transferwise’ business in Switzerland, according to a report in «Handelszeitung».
The best-known service provided by Transferwise is – nomen est omen – the transfer of money, at a cheaper rate than is available at traditional banks. Transferwise also offers its clients a multi-currency account including debit card for both private and business clients and it allows other banks to introduce the company’s technological infrastructure through an API-interface – as is the case with N26, bunq and Monzo.
Swiss Market Growing Fast
The company, led by co-founder and CEO Kristo Kaeaermann, has been pretty successful with its business model so far: it has post profits in each of the past three years. In 2019, Transferwise had a profit of 12.6 million Swiss francs ($13 million), almost the double of a year earlier, on revenues of 220 million francs (up 53 percent year-on-year).
The company says that Switzerland is one of the most important markets in Europe, with strong growth rates. So far, it has had a Swiss correspondent account at J.P. Morgan, according to newspaper «Liechtensteiner Vaterland». The next step now seems to be a proper representative office.
