Wise Group Shares Drop After US Bank Charter Rejection

Wise Group, the London-headquartered financial technology giant (formerly TransferWise), faced a significant setback in its ambition to establish a national trust bank in the United States, as its application was denied by the U.S. Office of the Comptroller of the Currency (OCC). This decision, announced on July 23, 2026, caused the company's shares, traded on the London Stock Exchange, to experience sharp declines of up to 11% on Friday. The company stated that this ruling does not impact its current U.S. operations, which continue under existing money transmitter licenses.

The OCC's denial was primarily based on two key factors. Firstly, historical issues were cited, including matters referenced in a July 2025 public Multi-State Consent Order that highlighted deficiencies in Wise's anti-money laundering (AML) program and slow filing of suspicious activity reports. Wise has stated that its compliance maturity has evolved significantly during this period, and it has addressed the feedback provided by the OCC.

The second significant reason was the evolving regulatory landscape in the U.S. In May 2026, the Federal Reserve announced a proposed policy change for payment system access, generally pausing account access for uninsured trust banks. Wise's original application was conditioned on obtaining direct access to master accounts at the Federal Reserve, an approach that became "non-viable" under this new policy.

Despite the denial, Wise Group emphasized that its normal operations in the U.S. remain unaffected. The company continues to operate under existing money transmitter licenses across 48 U.S. states and four territories, in addition to its portfolio of over 80 licenses globally. This indicates that the company's current business model in the U.S. is not solely dependent on a direct bank charter.

Obtaining a bank charter in the fintech sector allows firms to offer a broader range of banking services and operate under a single federal regulator, streamlining expansion. This objective was a crucial part of Wise's growth strategy in the U.S. market. In fiscal year 2026, the company served approximately 19 million customers, processing over $240 billion in cross-border transactions and saving customers more than $3 billion.

Looking ahead, Wise Group has informed the OCC of its intention to submit a new national trust bank charter application under a GENIUS Act framework. The GENIUS Act was enacted as part of changes to U.S. payments regulation, encompassing digital assets like stablecoins. The company believes its infrastructure is well-positioned for interoperability with digital assets within this evolving ecosystem. This new approach aims to achieve Wise's goal of direct access to the U.S. payment system and reduced costs through an alternative pathway. Analysts suggest that while this situation may delay the company's U.S. expansion plans, adapting to the new regulatory framework could prove beneficial in the long term.