Wise, a British fintech company, has raised its revenue growth forecast for the coming fiscal year as a result of the UK interest rate hike.
In its recently released full-year results, Wise increased its revenue growth forecast from 55%-60% to 68%-72%.
The historic rise in interest rates was cited by the London-based fintech as a key boost for its services.
“Notably, in Q3 FY23, we launched new initiatives to benefit our customers from the higher interest rate environment, and we made it easier for businesses to spend and get paid,” the company stated in its financial statement.
Wise co-founder and CEO, Kristo Käärmann said: “As interest rates increase, our customers expect a return on the balances they hold with us, and we intend to share much of the benefit of higher rates with customers.
“We launched ‘Interest’ within our Assets product in the UK this quarter; a completely new way for our customers to hold their money and earn a return.”
The British unicorn also stated that it is still “highly profitable” despite major investments in growth made last year.
“The investments we’ve made to deliver a superior infrastructure and product are resonating,” Käärmann added, “and in this quarter, more customers than ever used Wise.”
Wise received £300 million in additional funding from a syndicated debt facility arranged by Silicon Valley Bank in October of last year (SVB).
In 2021, Wise went public on the London Stock Exchange. Its share price has dropped by 42% since then, making it one of many publicly traded British technology stocks to suffer a drop in value.