Wise Moves: Why the UK Fintech Giant Is Ditching London for Wall Street

British fintech giant Wise has announced plans to shift its primary listing from London to New York, marking another blow to the UK stock market. The company, which debuted on the London Stock Exchange in 2021, believes the move will boost trading liquidity, expand its investor base, and accelerate growth in the U.S. market, which it views as its biggest opportunity.

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Wise will retain a secondary listing in London, but its decision reflects a growing trend of UK-based firms opting for Wall Street over the City. With London struggling to attract major tech listings, Wise’s move raises fresh concerns about the future competitiveness of the UK’s financial markets.

Wise’s decision to list in the U.S. follows a growing trend of major fintech firms opting for Wall Street over London. Companies like Stripe, Robinhood, and Klarna have all chosen U.S. listings, drawn by higher valuations, deeper liquidity, and broader investor access.

The UK has struggled to retain high-profile tech IPOs, with firms increasingly favouring the Nasdaq and NYSE, where fintech stocks tend to perform better. This shift raises concerns about London’s ability to compete as a global financial hub, especially as more UK-based companies consider making the same move.

As UK fintech giants Monzo and Revolut gear up for their highly anticipated IPOs, speculation is mounting over whether they will choose London or New York as their listing venue. Monzo, valued at £6 billion, has been in discussions with investment banks, with reports suggesting London remains a strong contender despite the growing trend of UK firms opting for Wall Street. Meanwhile, Revolut, valued at $45 billion, has signalled a preference for Nasdaq, citing greater liquidity and investor access. The UK government has actively courted both companies, hoping to secure their listings to revitalise London's struggling stock market. However, with fintech firms increasingly favouring the U.S. for higher valuations, the final decision could shape the future of Britain's financial sector.

There are signs of revival for London’s stock exchange. The UK government has introduced regulatory changes to make London more attractive for listings, and fintech firms like Starling Bank are considering London as an attractive option. Additionally, Shein, the Chinese fast-fashion giant, is reportedly eyeing a London IPO, which could boost confidence in the market. If London can secure high-profile listings and improve investor confidence, it may regain its status as a global hub for tech IPOs.

Glossary

Fast-Fashion... the design and manufacturing method of the clothing industry focused on quickly producing high volumes using low-quality materials, and is inexpensive.

Fintech... the word “fintech” is the combination of “finance” and “technology”, describing the use of technology to deliver financial services using technology (e.g. digital banking).

Initial Public Offering (aka 'IPO')... when a private company offers shares to the public for the first time, enabling the company to raise capital by selling ownership to public investors.

Liquidity... the access a person, company, or group has to cash or assets that can quickly be converted to cash without a significant loss of value.

Listing... when a private company allows existing shareholders to sell their shares directly to the public without issuing new shares. 

London Stock Exchange (aka 'LSE')... a stock market located in London, UK, where shares, bonds, and other securities are bought and sold. It is one of the oldest and largest stock exchanges in the world, serving as a platform for companies and governments to raise capital by issuing securities.

Market... an area where there are buyers (demand) and sellers (supply). This can be physical (retail outlet) or virtual (stock market).

Nasdaq... the National Association of Securities Dealers Automated Quotations (NASDAQ) refers to a global, electronic marketplace for buying and selling securities.

... a major stock exchange, particularly known for its large number of technology companies and its electronic trading system.

New York Stock Exchange (aka 'NYSE')... a stock market located in New York, United States, where shares, bonds, and other securities are bought and sold. It is one of the oldest and largest stock exchanges in the world, serving as a platform for companies and governments to raise capital by issuing securities.

Wall Street... refers to New York City's Financial District and the US financial industry as a whole.

... a symbol of financial markets, investments, and publicly-traded companies on the New York Stock Exchange (NYSE), the virtual market.