I do wonder how the swift collaboration is going... |
 Millipede,
a few things. I think you'll find Visa and Mastercard also have global transfer capability. It's a bit clunky at the moment, but they do have relationships with all the banks out there (sanctions permitting).
Also the SWIFT offer in itself is not slow. The back office in the banks is slow, the swift platform is not. The danger for wise is that IF SWIFT and the card networks integrate correctly into the burgeoning real time ACHs growing across the world then part from price (and price will erode) then WISE have no sustainable advantage.
The big word there is IF.
Equally IF Wise can make its offer to the banks simple and fast to integrate, Banks may take them up on it while/if the other alternatives develop. The difficulty for WISE is the one to one sale issue. Perhaps WISe's real strategic play is to buy/partner with one or both of the card schemes. Price is not a long term sustainable advantage for WISE. The very argument that the Banks can't compete on price leads to the conclusion that they will lose all income to wise. This is clearly not going to happen. As more alternatives arise margin will be nibbled away for everyone. Rather treasury management will be where margins are made and this will rely on volume.
I do invest in WISE, am optimistic, I just think the standalone play is not the end game. |
The B shares elapse on the fifth anniversary of the float which is july 2026. at that point this company goes in play. someone like apple and google could snaffle this up and take it up another level |
AFAICT there are now two platforms that enable international money transfers.
Swift and Wise.
Swift is slow and expensive. Wise is fast and cheap.
Banks can choose to use one or the other IMO. Developing their own will be too difficult.
(Worth noting Monzo uses Wise, Revolut uses Swift). |
When comparing HSBC's Global Payments system to Wise there are several potential disadvantages to using HSBC (which is typical of traditional banks.
HSBC often charges higher fees for international transfers, including upfront fees and less competitive exchange rates. Typically add a markup to the mid-market exchange rate, which can make transfers more expensive.
HSBC International transfers can take several business days, especially if intermediary banks are involved as they usually still use the SWIFT system.
HSBC platform can feel outdated and less intuitive whereas Wise offers a sleek, user-friendly interface designed for ease of use, with features like tracking transfers in real time.
HSBC supports many currencies, but not as many currencies as Wise.
Wise allows users to hold balances in multiple currencies, making it ideal for frequent international transactions.
HSBC Global Money Account is not available in as many regions as Wise does. Wise provides a multi-currency account that allows users to hold, convert, and manage money in multiple currencies, which is great for travelers, freelancers, and expats.
HSBC often has higher minimum transfer amounts and less favorable rates for smaller transactions.
HSBC requires you to have an existing HSBC account or meet certain eligibility criteria to use their global payments system whereas Wise is open to anyone, with no need for a traditional bank account, making it more accessible globally.
PS I have been a HSBC customer for over three decades making international transfers before Wise started. |
HSBC have an internal payments infrastructure across their network Global Money - so it might be that WISE is just plugging a gap.
But I may be wrong - as HSBC has just closed down Zing - their retail payments App launched to compete with the likes of Monzo, Revolut and WISE. So, in pulling their App - it might be a case if you can't beat them - join them? |
The Ceo of Wise's stated aim is to be THE platform across the globe ,so lets see if HSBC follow standard chartered and morgan stanley
Banks simply cant compete with Wise and hence it has a very good chance of global domination in a similar vein to Amazon |
If it does, 'whoosh' I'd guess. |
Does that imply that Wise may provide their platform to HSBC? |
Another massive validation of the WISE platform HSBC shuts down Zing,which was its attempt to take on wise,with the loss of 400 jobshtTPS://www.finextra.com/newsarticle/45372/hsbc-shuts-down-wise-competitor-zing |
Is this the recovery or are they gonna take it back down again. |
A sort of video version of the Money week article as posted by xippy on 30 Dec 24 |
WISE is busy eating the banks’ bread and butter. Crumbs so far, but they are starting to notice and can’t compete. How it will pan out is anyone’s guess but enjoy the ride. |
I have recently bought in here. The 20% per annum growth on its own is attractive, generated by the personal and business segments but the Platform segment could be the real driver in future years.
11,000 financial companies are connected to Swift and with their collaboration with Swift connecting the Wise platform should be relatively straightforward. Trillions of business is conducted crossborder worldwide by these groups so just a small success could translate into meaningful revenues.
So far they seem to have had great success with the new virtual banks but the legacy group due to their established infrastructures could be more difficult. Over time it will be interesting to see if the Swift collaboration will open up this market. Having Standard Chartered and Morgan Stanley using their platform must be a huge thumbs up and may encourage adoption. I don't know the margins but I think the Wise platform is some 80% cheaper than the established banks so even allowing for Swift fees the numbers should work for all parties.
Time will tell but as someone else said a takeover in the next few years seems a likely outcome so we may not get to find out. I am happy to punt a small amount since for me the Risk/Reward seems reasonable. |
Today
Peel Hunt cuts WISE to “add” (buy)1100 (1000p)
Berenberg raises WISE to 1240 (1045) Buy.
Just another piece of useless forecasting. |
nice to see someone else using the charts skyship.
i'd put my trendline thru the higher low, am using the 20, 50 and 200mda and i use the historic price levels rather than retracements, because psychologically the price paid is what you remember. and what shows up in your balance so you know when you are in profit, which is what most of us look at when thinking about transactions.
the well-written moneyweek article did bring this to a lot of people's attention. so the price frothed up and will likely come down again. but there is a lot to like about the company and it is in an uptrend which includes 2 golden crosses which is positive longer term. there is more good news about stan using this company, and i am a big fan of stan.
the fx headwinds were probably in place some weeks before the update, not just from the bond panic a week or so ago. so i am expecting numbers to be slightly weaker. which will take the froth totally out and will make a better entry or top up point.
at what point i would enter?
price was around 1045p at the time of the moneyweek article
if i'm impatient, i'll get in around the 900p level, if i'm patient around the 800p level, and if it hits the lower trend line between 700-750p in a couple of months it is a strong buy for me.
GLA
free stock charts from uk.advfn.com |
Adding here, useful dip. |
weaker £ affecting translation. that's the fx headwind |
How significant are these “forex headwinds”? |
It wasn't muted, it was a massive 8% drop in the first few minutes of trading (as usual) and milding back to -3%ish quickly. |
Quite a muted response. |
You might not get the chance of a pullback of that magnitude. Quarterly update anytime soon. Last few quarterly updates going back have been on the 15th, 16th, 16th, 16th, 12th, 18th. If the quarterly update shows continuing progress, then what for the share price? |
Want to buy here; but not after a c50% rise in jist 2months. Will wait for a pullback to c1000, or hopefully 930p:
free stock charts from uk.advfn.com |
UBS raises WISE TO £12.40 |
Telegraph article today catalogues experience of expat in Australia with English bank. Here’s an extract:
“ Burton insisted the bank failed to notify him either by email, phone or through his address in Australia. The lack of notice, Mr Burton said, led to three months of arrears before his letting agent flagged the issue. He told The Telegraph: “Barclays has an international bank account you can apply for. Why on earth they didn’t transfer me to that, I have no idea.”
Mr Burton insisted he tried everything to pay off the arrears but said endless red tape prevented him from doing so. He asked the Bank of Scotland if he could set up an account with them to pay the mortgage but was told this would not be possible.
In October, he called the Bank of Scotland and he was told that the matter had been passed to a legal firm, and a court date had been set to grant the bank repossession of the property. He had been served at his buy-to-let address. Mr Burton eventually paid £18,000 directly from Australia to the Bank of Scotland. Increasing regulations mean more and more banks are closing their international accounts. “
WISE can only go from strength to strength in view of such ineptitude and I look forward to further advances. |
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