Airwallex, a global financial technology platform, is reportedly preparing to pursue banking licenses in the U.S. and the U.K. as part of a broader plan to expand into lending, according to a recent report by the Financial Times.
The move signals a significant shift in strategy for the firm, which has historically operated using payment licenses.
PYMNTS notes that the company’s new direction could position it to offer a wider range of financial services.
To establish itself in lending, Airwallex is expected to apply for a banking license in the U.K., which the company views as a supportive environment for fintech players.
In the U.S., where regulatory requirements are more fragmented across state and federal levels, Airwallex is likely to consider acquiring an existing bank to simplify the process of obtaining regulatory approval.
Founded in Melbourne and now headquartered in Singapore, Airwallex provides multicurrency payment and banking infrastructure for global businesses.
While it has built its operations around cross-border payments, the company is now piloting a credit card in Australia as part of its push into lending.
CEO Jack Zhang previously indicated that Airwallex aims to eventually match the product offerings of major global banks.
The fintech, which currently holds a valuation of US$5.5 billion, has also expressed long-term ambitions of going public.
However, an IPO in the U.K. appears unlikely, with the U.S. capital markets still viewed as the preferred destination due to their liquidity and accessibility.
It remains to be seen whether market conditions will affect these plans, especially as other major fintechs have delayed public listings.
Featured image credit: Edited from Freepik
