Wise (formerly known as TransferWise) is a financial technology

company that specializes in international money transfers and

currency exchange. It was founded in 2010 by Taavet Hinrikus and
Kristo Käärmann, who were frustrated with the high fees associated
with traditional international money transfers.

Wise's main mission is to make international financial transactions

more transparent, cost-effective, and efficient. The company operates
on a peer-to-peer model, matching individuals and businesses in
different countries looking to exchange currencies. Instead of
transferring money across borders, Wise uses a clever system where
funds are essentially shuffled within its network, minimizing the
need for actual cross-border transfers.

Key features and aspects of Wise include:

1. Transparent Pricing: One of Wise's main selling points is its

transparent fee structure. The company aims to offer real
exchange rates, and they charge a small, upfront fee rather
than hiding costs in the exchange rate.
2. Multi-Currency Account: Wise provides users with multi-currency
accounts, allowing them to hold and manage money in different
currencies. This feature is particularly beneficial for
individuals and businesses dealing with international
transactions regularly.
3. Borderless Banking: Wise enables users to send money
internationally without the need for traditional banking
intermediaries. This can result in faster transfers and
potentially lower fees.
4. Wise Business: In addition to serving individual customers,
Wise offers services tailored for businesses, allowing them to
make international payments and manage multi-currency accounts.
 5. Regulation and Security: Wise is regulated by financial
authorities in various jurisdictions, providing users with
confidence in the security and legality of their services.
6. Name Change: In February 2021, TransferWise rebranded as Wise,
reflecting its expansion beyond just money transfers into a
broader range of financial services.

Wise, formerly known as TransferWise, is a financial technology

company that has gained significant recognition for its innovative
approach to international money transfers and currency exchange.
Founded in January 2011 by Taavet Hinrikus and Kristo Käärmann, Wise
emerged from the personal experiences of its founders who were both
working in different countries and faced challenges transferring
money across borders due to the high fees imposed by traditional
banks.

Here's a more detailed overview and background of Wise:

1. Founders:
o Taavet Hinrikus: Prior to founding Wise, Hinrikus was the
first employee of Skype, where he served as the Director
of Strategy. He encountered currency exchange issues when
working in London but getting paid in euros.
o Kristo Käärmann: Käärmann worked in London and faced
similar currency challenges. He and Hinrikus came up with
a peer-to-peer solution to exchange money at the mid-
market rate, thereby avoiding the high fees charged by
banks.
2. Peer-to-Peer Model:
 o Wise operates on a peer-to-peer model, connecting users
in different countries who want to exchange currencies.
Instead of physically transferring money across borders,
Wise employs a system where funds are matched locally,
reducing the need for large international transfers.
3. Transparent Pricing:
o Wise has been known for its commitment to transparency in
pricing. Instead of making money through hidden fees or
unfavorable exchange rates, Wise charges a small, upfront
fee and provides users with the real mid-market exchange
rate.
4. Global Expansion:
o Wise rapidly expanded its services to cover various
currencies and countries, gaining popularity among
individuals and businesses engaged in international
transactions. The company has continually worked to add
new features, such as the ability to hold and manage
money in multiple currencies within a single account.
5. Multi-Currency Accounts:
o Wise offers multi-currency accounts, allowing users to
hold and manage funds in different currencies. This
feature is particularly beneficial for those who
frequently deal with international transactions, enabling
them to receive, hold, and send money in various
currencies without incurring additional conversion fees.
6. Regulation and Compliance:
o Wise has prioritized regulatory compliance and is
regulated by financial authorities in various
jurisdictions. This commitment to compliance adds to the
trust and credibility of its services.
7. Rebranding to Wise:
 o In February 2021, the company underwent a rebranding,
changing its name from TransferWise to Wise. This change
was made to reflect its expanded range of financial
services beyond just money transfers.
8. Additional Services:
o Wise has expanded its offerings to include business
accounts, debit cards, and other financial services,
making it a more comprehensive financial platform.

Wise has played a transformative role in the fintech industry,

challenging traditional banking practices and offering consumers and
businesses a more cost-effective and transparent way to manage
international transactions. Its success has contributed to the
broader shift toward digital, borderless financial solutions.

Entrepreneurial strategy and innovation are closely intertwined

aspects of business development. Entrepreneurs often need to
formulate effective strategies to navigate the dynamic business
environment and drive innovation to stay competitive. Here's a
breakdown of the relationship between entrepreneurial strategy and
innovation:

1. Identifying Opportunities:
o Entrepreneurs must be adept at identifying opportunities
in the market. This involves understanding customer
needs, market trends, and potential gaps in existing
products or services.
2. Market Research:
 o A strategic entrepreneur conducts thorough market
research to gather insights into customer preferences,
industry trends, and competitive landscapes. This
information helps in making informed decisions and
identifying areas for innovation.
3. Setting Clear Objectives:
o Entrepreneurs need to set clear and measurable objectives
for their ventures. These objectives should align with
the overall vision and mission of the business.
4. Risk Management:
o A key aspect of entrepreneurial strategy is managing
risks effectively. Entrepreneurs must assess and mitigate
potential risks while being open to calculated risks that
could lead to innovation and growth.
5. Innovation Culture:
o Entrepreneurs foster an innovation culture within their
organizations. This involves encouraging creativity,
curiosity, and a willingness to explore new ideas among
employees.
6. Investing in Research and Development (R&D):
o Strategic entrepreneurs allocate resources to research
and development activities. This investment can lead to
the creation of new products, services, or processes that
set the business apart from competitors.
7. Agile Decision-Making:
o Entrepreneurs often operate in fast-paced environments.
Being agile in decision-making allows them to quickly
adapt to changes, seize opportunities, and address
challenges.
8. Technology Adoption:
o Entrepreneurs leverage technology to drive innovation.
Whether it's adopting new tools for business operations,
 utilizing data analytics, or incorporating emerging
technologies, staying technologically relevant is crucial
for innovation.
9. Customer-Centric Innovation:
o Entrepreneurs focus on understanding customer needs and
pain points. Innovations that directly address customer
concerns or provide unique value propositions are more
likely to succeed in the market.
10. Collaboration and Networking:
o Entrepreneurs often collaborate with other businesses,
academic institutions, or industry experts. Networking
and partnerships can provide access to new ideas,
resources, and markets.
11. Continuous Learning:
o Successful entrepreneurs prioritize continuous learning.
Staying informed about industry developments, market
trends, and emerging technologies is essential for making
informed strategic decisions and fostering innovation.
12. Adaptive Strategies:
o Entrepreneurs recognize that market conditions may change
rapidly. Adopting adaptive strategies allows them to
pivot when necessary, seizing new opportunities and
mitigating potential threats.
13. Measuring and Evaluating Innovation:
o Entrepreneurs implement metrics and key performance
indicators (KPIs) to measure the success of their
innovation efforts. Regular evaluations help refine
strategies and ensure that innovation aligns with
business goals.
14. Intellectual Property Protection:
o Entrepreneurs understand the value of intellectual
property and take measures to protect innovative ideas,
 products, or processes through patents, trademarks, or
copyrights.

In summary, entrepreneurial strategy and innovation are intertwined

elements that contribute to the success and sustainability of a
business. Entrepreneurs need to develop a strategic mindset, foster
an innovative culture, and remain adaptable to effectively navigate
the challenges and opportunities in the dynamic business landscape.

Link the two together

Wise, formerly known as TransferWise, exemplifies the integration of

entrepreneurial strategy and innovation in the financial technology
(fintech) sector. Here's how these concepts relate to Wise:

1. Identifying Opportunities:
o Wise was founded by Taavet Hinrikus and Kristo Käärmann,
who identified a significant opportunity in the market to
address the inefficiencies and high costs associated with
international money transfers through traditional banks.
Their realization of this opportunity laid the foundation
for Wise.
2. Market Research:
o The founders conducted extensive market research to
understand the challenges people faced with international
money transfers. Recognizing the high fees and hidden
charges imposed by banks, they saw an opportunity to
disrupt the market with a more transparent and cost-
effective solution.
3. Setting Clear Objectives:
o Wise's clear objective from the outset was to provide a
more transparent and affordable alternative for
 international money transfers. The company's mission has
since evolved to offer a broader range of financial
services under the Wise brand.
4. Innovation Culture:
o Wise has fostered an innovation culture within the
organization. The company continually seeks new ways to
improve its services, whether through enhancing the user
experience, expanding its product offerings, or exploring
partnerships with other financial institutions.
5. Investing in Research and Development (R&D):
o Wise invests in technology and R&D to enhance its
platform and services continually. The development of
features such as multi-currency accounts, business
accounts, and the Wise debit card reflects the company's
commitment to innovation.
6. Agile Decision-Making:
o Wise operates in a dynamic and competitive fintech
landscape. The company's ability to make agile decisions,
adapt to changes in regulations, and respond to evolving
customer needs has been crucial to its success.
7. Customer-Centric Innovation:
o Wise places a strong emphasis on understanding and
addressing customer pain points. Its commitment to
offering real exchange rates, transparent pricing, and
multi-currency accounts directly aligns with meeting
customer needs for fair and efficient international money
transfers.
8. Collaboration and Networking:
o Wise has collaborated with various partners and financial
institutions to expand its services and reach a broader
audience. These collaborations have allowed Wise to offer
new features and improve its overall value proposition.
 9. Continuous Learning:
o Wise remains attuned to industry developments, regulatory
changes, and emerging technologies. This commitment to
continuous learning enables the company to stay ahead of
the curve and make informed strategic decisions.
10. Adaptive Strategies:
o Wise has demonstrated adaptability by evolving beyond its
initial focus on money transfers. The rebranding from
TransferWise to Wise reflects a strategic move to
position the company as a comprehensive financial
platform offering a broader range of services.
11. Measuring and Evaluating Innovation:
o Wise employs metrics and KPIs to measure the success of
its innovation efforts. Regular evaluations help the
company refine its strategies, ensuring that its
innovations align with its mission and resonate with its
user base.

In summary, Wise's success can be attributed to a combination of

entrepreneurial vision, strategic decision-making, and a commitment
to continuous innovation. The company's ability to identify market
opportunities, understand customer needs, and adapt to changes in the
fintech landscape underscores the effective integration of
entrepreneurial strategy and innovation in its business model.