Literature Review on Transfer Wise: SWOT Analysis and Porter's Five Forces Model

LITERATURE REVIEW

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
Presentation of data.....................................................................................................................4
Identification of problems on the basis of internal and external or competitive environment....6
Presentation of Usefulness and criticism of model used.............................................................7
Analysis of Transfer Wise Reports..............................................................................................8
Discussion........................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Financial technology means the technology that provides financial services in modern
and easy way. This industry helps in improving the ways of providing financial services by using
smartphones. The organizations under this sector covers startups and established companies
providing services(Kulkarni and Parekh, 2020). The newly setup organizations try to suggest
new ideas and strategies to improve and enhance the use of financial services in a better and easy
way.
Financial Technology covers many areas such as investments, banking services,
insurance and risk management (Tepe, Geyikci and Sancak, 2022). Among the various financial
service providing companies,'WISE' formerly called 'Transfer-wise' is a leading fin tech
company in this sector. IT has its headquarters in London, UK and a range of 8 offices. It is
available in 34 countries.
The company providing financial services to the customers. It provides the facility of
money transfer from one country to other countries with the exact exchange rate and minimum
transaction cost than the cost charged by the banks or other payment applications.
Various services are offered by the company such as Debit card facilities, credit cards,
transfer through mobile application or accepting, sending and holding several currencies in
accounts, transfer calculator to calculate the fees charged of transactions, monthly statements,
etc.(Wise Review (formerly TransferWise) – Apr 2022 – Pros vs Cons & Wise’s Top 3
Features .2022).WISE helps many businesses and organisation, for business accounts it receives
payments from clients of other countries, help freelancers, family members or students studying
or leaving abroad, etc.
WISE has a strategy of locking the exchange rate for an amount of time, so that the
variations in exchange rate of the currencies doesn't affect much.
Wise provides a debit card facility for the users with personal account. It can be used by
users anywhere for anything. There are zero transactions costs and very low conversion rates.
Transactions from the WISE app or cards are safe due to D Dos protection security and hardened
servers. For safe and secure transactions, it provides two-step verification for login and strong
passwords.

MAIN BODY
Presentation of data
SWOT analysis
To analyses the internal and external environment of an organization, SWOT analysis is
used, it specifies the strengths, weaknesses, opportunities and threats of an organization.
Transfer wise, provides it customers, clients and users a transparency in money transfer
services. It is more preferred by the users because it charges very low costs for transferring of
payments from one country to other(Benzaghta and et.al., 2021). Transfer wise offers speedy
transfers within 24 to 48 hours. The transactions of transfer wise are safe and secure, thus
making it the top ranking fin-tech company.
On the contrary, there are certain weaknesses inherent in internal environment of
Transfer Wise such as, safety concerns of the users regarding their personal information,
accounts information, card details, etc. Transfer wise offers a wide range of services with the
help of franchisees, lack of cooperation among them affect the conduct of operations in the
organization. The business need to invest funds in updating the technology to meet up its
business vision.
To overcome above weaknesses, there are certain opportunities available to Transfer-
wise and by exploiting them they can become the top leading money transfer services
organization in near future by improving its policies and updating with the current environment.
The company can expand it reaches to the whole world market by setting up offices (Quezada
and et.al., 2019). By offering number of benefits to customers such a free transfer, referral codes,
discounts or vouchers while making payments or opening of accounts will lead to increase in
number of customers. Transfer- Wise can attract more investors through attractive interest rates
and investment benefits.
Transfer wise is even facing certain threats such as competition which is the main threat
to the organization. Various competitors in the market lead to direct competition for the
Transfer-wise in expanding its services. The reforms, policies, legislation or laws by the
government affect the operational activities of the company.
Porter's Five Forces Model
This model is the competitive strategy used for the analysis of market forces of the
organization. The five forces of Michael Porter are ;threats of New Entrants, bargaining power