This is called "Perpetual KYC" (Know-your-customer), it didn't exist back when you signed up. Depending on your risk score, your data needs to be validated every 5 years, every 3 years or even annually.
So, this is the new normal.
(I also just had to do it yesterday.)
I still love Wise and I am happy to go through this KYC stuff. Because in exchange they pretty much accept paying everywhere, where other payment providers would block your payment. I often have the situation that credit cards from my local (German) bank reject purchases made abroad, and every time I am so happy that Wise always works.
"So, this is the new normal." You're right - I've had to do a few KYC checks recently with banks, lawyers, and accountants, and in the past I've had to do it for a personal finance application for an "interest-free deal" from a furniture store. Here in NZ there's legislation that mandates the KYC checks as part of anti-money laundering laws.
Unfortunately, I've already had sensitive information breached because of this - twice! One was from a large financial institute in Australia called Latitude - I didn't even know that I had ever interacted with them, but they are the parent company of a bunch of these interest-free credit card deals.
More to the point, regular banks are subject to this as well (although Wise keeps insisting it's not a bank, fooling exactly nobody) and require people to show up in person for identity verification every so often. At least mine was pompous enough to demand that.
I'm fine to do this in person, but you are right, regular bank is at risk of having my data stolen. The only difference is I can't function without bank, I am able to function without Wise... that's probably what makes me thinking if it's OK to take the risk here.
Reading other commenters I think it should not be a big deal, maybe the itch I feel is part of my weirdness..
It depends on your circumstances and local laws too. In the US there are laws limiting your liability for fraudulent use of your funds, credit cards, etc. I don't keep money in wise for more than a few hours, and once it's in my real bank account, it's relatively safe. Not that I have much money to begin with lol.
And in my case, I need Wise to get paid. So the choice is between "slight risk of identity theft" and "not being able to pay rent".
although Wise keeps insisting it's not a bank, fooling exactly nobody
I think it has to do this, at least in the UK (where they're domiciled). The UK has very strict regulations on financial products, and especially around using the word 'bank', so they probably need to be absolutely profuse in letting customers know they're not a bank.
Always works is a bit strong. I have a few horror stories.
Certainly Wise are not as good as they used to be back in the day.
I still use them, mostly because they are probably the safest fintech outfit compared to the others that operate out of, e.g. Hong Kong. But I'll still never forgive them for some of the dumb shit they've done on some of my transactions in recent years (sadly I can't discuss in public because, well, you know, security).
What I can say publicly are more generic things like how transactions can be so lethargic these days, i.e. operationally they are clearly batching and netting far more aggressively, which is clearly entirely for their operational convenience ... who cares if your transaction doesn't go through for 4–8 hours, right ?
Comments
This is called "Perpetual KYC" (Know-your-customer), it didn't exist back when you signed up. Depending on your risk score, your data needs to be validated every 5 years, every 3 years or even annually.
So, this is the new normal.
(I also just had to do it yesterday.)
I still love Wise and I am happy to go through this KYC stuff. Because in exchange they pretty much accept paying everywhere, where other payment providers would block your payment. I often have the situation that credit cards from my local (German) bank reject purchases made abroad, and every time I am so happy that Wise always works.
"So, this is the new normal." You're right - I've had to do a few KYC checks recently with banks, lawyers, and accountants, and in the past I've had to do it for a personal finance application for an "interest-free deal" from a furniture store. Here in NZ there's legislation that mandates the KYC checks as part of anti-money laundering laws.
Unfortunately, I've already had sensitive information breached because of this - twice! One was from a large financial institute in Australia called Latitude - I didn't even know that I had ever interacted with them, but they are the parent company of a bunch of these interest-free credit card deals.
So yes, this is the new normal but it's not good.
More to the point, regular banks are subject to this as well (although Wise keeps insisting it's not a bank, fooling exactly nobody) and require people to show up in person for identity verification every so often. At least mine was pompous enough to demand that.
I'm fine to do this in person, but you are right, regular bank is at risk of having my data stolen. The only difference is I can't function without bank, I am able to function without Wise... that's probably what makes me thinking if it's OK to take the risk here.
Reading other commenters I think it should not be a big deal, maybe the itch I feel is part of my weirdness..
It depends on your circumstances and local laws too. In the US there are laws limiting your liability for fraudulent use of your funds, credit cards, etc. I don't keep money in wise for more than a few hours, and once it's in my real bank account, it's relatively safe. Not that I have much money to begin with lol.
And in my case, I need Wise to get paid. So the choice is between "slight risk of identity theft" and "not being able to pay rent".
I think it has to do this, at least in the UK (where they're domiciled). The UK has very strict regulations on financial products, and especially around using the word 'bank', so they probably need to be absolutely profuse in letting customers know they're not a bank.
Yep, other banks and neobanks did that to me as well - local bank, Revolut, etc. all had requirements for ID.
Well its not a bank because you don't get deposit protection with Wise (if you are in a country that has such things).
Always works is a bit strong. I have a few horror stories.
Certainly Wise are not as good as they used to be back in the day.
I still use them, mostly because they are probably the safest fintech outfit compared to the others that operate out of, e.g. Hong Kong. But I'll still never forgive them for some of the dumb shit they've done on some of my transactions in recent years (sadly I can't discuss in public because, well, you know, security).
What I can say publicly are more generic things like how transactions can be so lethargic these days, i.e. operationally they are clearly batching and netting far more aggressively, which is clearly entirely for their operational convenience ... who cares if your transaction doesn't go through for 4–8 hours, right ?
Re: batching.
If I send from non-wise account in currency A to currency B directly to a non-wise B-denominated account it can take hours/days.
If I add and convert the balance first to currency B within wise and then send it's there in seconds.