Wise's U.S. Bank Charter Application Rejected by OCC
The Office of the Comptroller of the Currency (OCC) denied Wise’s application to establish a national trust bank in the United States, triggering an immediate market reaction that sent its stock down nearly 6% on July 24 and caused London-listed shares to fall as much as 10%. The rejection halts Wise's strategy to connect directly with the Federal Reserve payment system, which was expected to reduce costs and expand profit margins in a key growth market. A trust bank charter would have allowed it to bypass intermediary banks that currently take fees for processing transactions. The OCC cited unresolved weaknesses in Wise’s anti-money laundering (AML) programs as well as concerns over its leadership team's lack of banking experience, which are critical requirements for managing federal payment systems. The decision also carries broader implications for fintechs seeking bank charters during a wave of applications; this appears to be the first public rejection by the OCC in recent years and may signal stricter compliance expectations moving forward. Despite the setback, Wise continues operating under existing money transmitter licenses across most U.S. states.
