For many UK companies, Wise (formerly TransferWise) has been a trusted solution for managing international payments and multi-currency accounts. However, recent account closures have left some businesses scrambling for alternatives. If your company has been affected, it’s essential to understand why this might have happened, what steps to take next, and which banking alternatives can meet your needs.
This guide will help you navigate account closures and introduce the best digital banks for UK companies.
Why Does Wise Close Business Accounts?
Account closures can happen for various reasons, including:
Compliance Issues: Wise is bound by strict Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. Missing documents or red flags during compliance reviews can lead to account termination.
High-Risk Industries: Businesses in certain sectors, such as cryptocurrency, gambling, or high-risk trades, may not align with Wise’s risk appetite.
Suspicious Activity: Unusual transaction patterns or non-compliance with Wise’s terms of service can trigger account reviews and closures.
Business Ineligibility: Companies that don’t meet Wise’s evolving eligibility criteria may face account restrictions or closures.
Change in Risk Appetite: Licensed financial institutions like Wise often adjust their risk acceptance policies in response to changes in the regulatory environment. This may have led Wise to reassess and reduce certain types of risks in their client portfolio, resulting in the closure of multiple accounts.
What to Do If Your Wise Account Is Closed
1. Understand the Reason for Closure
Wise typically notifies account holders about the closure via email, explaining the reason. Carefully review their message to identify whether it was due to compliance, activity, or eligibility concerns. If the reason isn’t clear, contact Wise support for clarification.
2. Retrieve Your Funds
When Wise closes an account, they usually allow a grace period for users to transfer their remaining funds to another account. Act quickly to ensure no disruption to your business operations.
Prepare an alternative bank account to expedite the transfer process. If you would like to get an up to date list of best banking alternatives similar to Wise and with broader risk appetite, fill out our contact form with your company details and we will send it to you by email.
3. Appeal the Closure (If Possible)
If you believe the closure was a mistake, you can appeal Wise’s decision by providing additional documentation or clarification. While not guaranteed, this approach has worked for some businesses.
4. Explore Alternative Banking Solutions
The most critical step is finding a reliable banking solution to replace Wise. Many digital banks and fintech platforms offer similar features, often with added benefits. You may contact us for a list of UK and EU banking alternatives.
3 Popular Alternative Banking Solutions for UK Companies
Digital banks have revolutionized business banking with their low fees, ease of use, and innovative features. Here are the best alternatives to Wise for UK companies:
1. Revolut Business
Why It’s a Great Alternative: Revolut offers multi-currency accounts, low fees, and robust financial tools for businesses of all sizes. It supports international payments and provides real-time currency exchange at competitive rates.
Key Features:
Hold and manage over 30 currencies.
Automated expense management tools.
Seamless integration with accounting software.
2. Tide Business
Why It’s a Great Alternative: Tide specializes in UK business accounts, catering to startups and small businesses. Its user-friendly app and fee transparency make it a popular choice.
Key Features:
Quick and simple account setup.
UK sort codes and account numbers.
Low-cost international transfers.
3. Starling Bank
Why It’s a Great Alternative: Starling is a fully licensed UK bank offering excellent business banking services. It combines digital convenience with high levels of security and reliability.
Key Features:
Free UK business accounts with no monthly fees.
Multi-currency accounts for international trade.
FSCS protection for deposits up to £85,000.
What to Look for in a Banking Alternative
When choosing a replacement for Wise, consider the following factors:
Multi-Currency Support: Ensure the provider allows you to hold and manage funds in multiple currencies.
Competitive FX Rates: Look for low-cost currency conversion to save on international transactions.
Regulatory Compliance: Choose a provider with strong AML and KYC processes to avoid future disruptions.
User Experience: Opt for a platform with a user-friendly interface and robust customer support.
Integration Options: Check if the bank integrates with your existing accounting and financial tools.
Best Practices to Prevent Future Account Closures
Maintain Compliance: Regularly update your documentation to comply with AML and KYC regulations.
Monitor Transactions: Avoid transactions that may appear suspicious or fall outside your stated business activities.
Diversify Banking Providers: Consider maintaining accounts with multiple providers to minimize risks.
Stay Informed: Keep up with the terms of service and compliance policies of your banking providers.
Conclusion
While Wise has been a trusted platform for many UK companies, account closures can happen for various reasons. By understanding the cause, retrieving your funds promptly, and transitioning to a reliable alternative, your business can minimize disruptions and continue operations smoothly.