Wise has unveiled a new multi-currency investment feature that will give people and companies in the UK more autonomy in deciding how their money is held.
The new feature – Assets – will be available in the UK market and will also enable people and businesses to potentially earn a return on their money across 54 currencies.
Wise account holders in the UK can now access the feature, while Wise business customers can start using Assets on the web. Access on the Wise mobile app is expected to be introduced in a few weeks.
The company has chosen Stocks to be the first asset, with a wide-ranging portfolio of 1,557 of the largest public firms worldwide included in the MSCI World Equity index, including Amazon, Apple and Google. BlackRock has been chosen to provide the tracking fund for this index.
UK customers will be able to tap ‘Cash’ on any of their balances of jars, then choose ‘Stocks’, which will enable them to invest the money held into the chosen index fund. Earnings will be represented in the customer’s balance currency and are updated daily. Customers are able to switch the money they hold in stocks back to cash at any time.
The overall cost of the feature will include a 0.55% service fee to Wise and a 0.15% fund fee to BlackRock. Investments held in Assets may be entitled to compensation from the Financial Services Compensation Scheme for up to £85,000.
Wise commented, “Unlike money held in traditional investment accounts, customers will have instant access to the majority of their money meaning they can hold their balance in Assets, and still spend and send the money in real time, as and when they need it.”
Wise added that it is seeking to create a more convenient experience for people who send, hold and receive money in multiple currencies.
The company intends to roll out Assets to the wider European market as a new step at some point in the future.
Wise CEO and co-founder Kristo Käärmann said, “People all over the world are holding billions in their Wise and Wise Business accounts for the long-term. But holding money in various currencies can be hard to manage efficiently. Assets is seeking to solve that problem, by providing an opportunity for customers to earn a return on their money with us, in a host of different currencies, all in one place.
“It’s not a standard current account, or a savings account, or a stock picking investment platform. It’s something new we’ve built to give our customers a balance between the convenience, reliability, and potential returns of all three. We’re solving financial problems for people who are living more international lives. This new product will take us one step further in replacing old-school international banking, by making Wise work harder for our customers.”
BlackRock UK head of banks and digital channels Joe Parkin added, “People are increasingly turning to a single app to manage their financial lives and improve their wellbeing. Offerings, such as Assets from Wise, are bringing financial services into the digital age and in-line with consumers’ expectations. Providing people with investments alongside other financial products is critical to helping them achieve their long-term goals.”
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