At E2Exchange, we love working with inspiring entrepreneurs and learning from them. Co-Founded by Estonian expats Taavet Hinrikus and Kristo Käärmann, TransferWise is a great success story based on a business that aims to eliminate the high transfer fees associated with sending money overseas. Launched in 2011, the company is already valuated at almost $1 billion growing at a rapid rate of 15% per month.
The idea behind TransferWise came about when Hinrikus and Käärmann realised the major cost people face when transferring money abroad. In light of this, they developed a system that hits the bank’s bottom line. TransferWise uses a process similar to the ones big financial institutions use to “cross-trade” securities, without acquiring costs, by matching buyers and sellers and making sure both sides have the money ready to swap.
TransferWise is a great example of how the technology sector is challenging banks with new innovative ideas. The “downright disruptive technology” aims to become the Google of financial services, which doesn’t seem to be out of reach considering the vast global reach it has achieved.