Arjun Thyagarajan | Wise

ARJUN THYAGARAJAN

Co-Founder and CEO of Wise, a provider of digital banking services used to help small businesses and help them grow through partnerships.

What Is Wise And How Do You Do Things Differently?

Wise provides digital-only banking and payment services designed for the modern business, offering financial solutions that match the business needs of today in ways traditional banks do not.

Wise is embedding banking into the digital ecosystems of modern businesses. By "modern businesses," I mean companies aspiring to go digital or companies that were born digital — companies that implement and capitalize on the technology of today. As more and more businesses adopt digital practices, non-digital solutions become a pain point. As an example, think of online retailers, like Shopify stores — these businesses emerged digitally and sell products exclusively online. There's nothing physical about them, and they are able to run their business from anywhere they'd like. Traditional banking doesn't align with their business model, and it starts with the need for a visit to a local branch in order to open an account. It forces internet entrepreneurs to step outside of their digital world, consuming time and distracting from focus. Shouldn't a digital company be able to bank digitally, too? That's where Wise comes in. Embedded banking means bringing banking to business owners instead of business owners to the bank, and that's what Wise does. With Wise, business owners can open a bank account online from their phone, tablet, or computer — and quickly. No visit to a branch, no long lines, no masks and sanitizer, and no time constraint from bank hours. Customers can bank whenever they want and from wherever they want through our mobile app or online at our website, on the devices they are already using every day — banking is no longer a siloed task.

But that's just the tip of the iceberg. Not only does Wise provide a digital-only solution for banking, it enhances banking with capabilities that traditional banks do not. Wise is banking with built-in payments, meaning Wise customers can pay employees, contractors, vendors as well as create invoices in seconds to request payments. This all happens within the Wise platform, sending payments directly from and receiving payments directly to the Wise bank account. This eliminates the need for 3rd-party payment platforms, which require additional steps to move money from point A to point B.

The whole point is to make banking and payments as seamless, fast, and easy as possible for our customers. Here's an example: when a Wise customer sends an invoice to a client, that client can choose how they pay (debit card, credit card, bank transfer, etc) and can make the payment online. Once the client makes the payment, the funds are instantly available in the Wise customer's bank account - no action required. We've added the functionalities of payment platforms like Square and PayPal to the banking experience, essentially cutting out the middleman.

Wise also offers a card reader for in-person purchases so that even businesses with physical locations can benefit from digital banking and payments with Wise. Imagine a mom-and-pop store owner - instead of using something like Square to accept payments and having to pay to transfer earned money from Square into their bank accounts, in-person payments can go straight into their bank accounts at the moment of transaction with Wise. No daily transfer limits, no transfer fees, no multiple apps. Everything is in one place, making managing and keeping track of finances a lot easier. The same mom-and-pop store owner can then pay suppliers, employees, and beyond, right in the same place that they accept payments - from where they bank. This is truly all-in-one banking, completely digitalized.

It doesn't stop there. We also give businesses the option to become a partner, meaning businesses can offer banking directly from their platform/product/marketplace via Wise. This is the essence of embedded banking - inserting banking into another experience. This capability is a game-changer.

What Is Your Background? What Led You To Starting Your Own Company? And How Did You Choose This Space?

I kicked off my career with a focus in computer and software engineering, and as I gained more and more experience, I widened my focus to include business management, too. I've held several roles at companies at various stages - from big, established companies, like LG Electronics and GE, to very young companies, including multiple startups. Ultimately, I set out to do what I always knew I wanted to do - go all-in and start my own company.

Just before Wise, I was at a hot startup. While it was a great role and opportunity, I couldn't help shake the feeling I just wasn't doing what I truly wanted to be doing. The original plan was to stick it out, to keep at it in this role. But then I did the unthinkable -- I quit.

I began searching for problems that needed solving -- ideating 24x7! But not just a solution and not just an idea, I needed (and wanted) a plan. I didn't know exactly what I was going to do, but I did know the criteria I needed to fulfill. The product I would create needed to make me excited to wake up every day, offer a new solution to an old problem, redefine customer experience, and be 100% digital - among other things.

My ideation led me to explore the world of FinTech, and then I knew what I was going to do. I was fascinated by the rapid advancement of technology and how it was already transforming financial services. It got me thinking -- what if…...we could build a banking product that can deliver on the promise of putting the customer first? And solve real-world problems. The rest is history. Wise was born in January 2019 and has been on a mission to change the way businesses bank, pay, and get paid ever since.

What Have Been The Most Challenging And Most Exciting Moments For You And The Company?

Aside from the obvious answer of being my own boss, my favorite part of my entrepreneurial journey is that I can see the impact and results of my work more than I ever have before. This comes from being able to make my own decisions and the level of responsibility you assume as an entrepreneur. Another favorite part is that my journey confirms for me that my instincts can be trusted.

I suppose my least-liked part is the stress of failing or making the wrong decision. It's definitely different to fail as an entrepreneur than it is to fail in an individual role at a company. As an entrepreneur, uncertainty comes with making new decisions and taking risks - until you see the outcome, you can wonder if you made a bad call. This is obviously uncomfortable. But this is all part of the entrepreneurial ride, and I wouldn't change it. These concerns drive you to heightened motivation and teach you how to better manage stress.

What Was The Fundraising Process Like For You? Tell Us About Your Investors And What You Use The Money You’ve Raised For.

The fundraising process was quite the journey. It was exhilarating, and I was ready for it. It began in late 2019 when I started to pitch Wise to early-stage VCs. While most gave great feedback, none invested - some passed, some ghosted. I then shifted my focus back to building the business and the product - I knew we would ultimately find the right investor and wanted to be ready for that moment.

In February, I met a seed-stage VC, one with a different outlook towards investing. It was a high-energy conversation, and I felt like I was talking to friends right from the start. This time, there was no pitch. That's how I knew Wise had found the right investor - the right match didn't require a pitch because Wise had found a believer in its vision, in the team, and in the progressively digital world.

How Did You Come Up With Your Company Name?

This was a really fun exercise. I immediately knew I wanted a four-letter, one-syllable word, and this is what kicked off the naming brainstorm. I wanted a name that would cater to developing a strong brand and that would accurately represent my company.

I made quite a long list of four-letter names - some of which make us chuckle now. It was an iterative process. I thought about each possible name thoroughly - assessing the potential positives and negatives of each.

It became clear to me that Wise was the perfect fit - it ticked all the boxes of what I was looking for in a name. To me, it stood out in the banking and payments industry without being inappropriate. It has a positive connotation. It served as a foundation for our mission as Wise is here to redefine banking by making it "wiser." It also gives an edge when it comes to branding since we can leverage wordplay that makes Wise unique.

Can You Walk Us Through A Typical Work Day?

I try to break my work day up into 3 dedicated sessions, generally after breakfast, after lunch, and after dinner. I do this because when you're running a startup, it is easy to forget to take breaks to reset or spend time with family.

The morning is typically reserved for answering emails and meetings. I try to keep the afternoon session for heads-down work, free of slack messages and emails so I can focus individually and make progress. The evenings are often meeting-heavy and a time to take care of task goals of the day that have yet to be completed.

Sometimes the evenings can go rather late, often lasting until 2am. Then it's time for sleep, and the routine starts again at about 7am. When I wake up, I try to get a run in when I can, and there is definitely coffee involved. Currently, I don't have a commute, of course, and am working from home every day - but normally it's just a short car ride to our headquarters in San Mateo, CA. I'll say the days are non-stop, but I love it!

How Do You Think Your Industry Will Change Post-COVID?

The current COVID-19 pandemic is proving to be a defining time in world history that is driving a monumental change. One thing it is doing is proving the power of digital. In a contactless world where we are confined to our homes for an extended period of time, digital is either the only way to do something, like shopping, or it is the means to doing things in a safer manner, like video chatting with a doctor rather than going into the doctor's office.

Before the pandemic, digital technology was undeniably adopted by many. But because our typical tasks and routines have been disrupted and are now challenges, the digital net is cast wider to include those previously not leveraging digital technology. It is also causing people to be creative and repurpose technology in ways perhaps not originally intended. Think of Zoom - it has an automatic association as a tool meant for business. Now, it is being used in personal life - as a way to host group gatherings and connect with distant family and friends. We see dance teachers figuring out how to use livestreams to continue giving dance lessons as well as musicians recreating concert experiences via livestreams. We see telehealth becoming mainstream. The same thing applies to the embedded finance industry, which has opportunity in a time many industries are suffering.

I do think things will be different post-COVID-19. Even if things were to turn back to "normal" - people and business have learned the benefits digital brings and will likely continue to leverage digital technology. For example, businesses resistant to remote workers have been forced to work entirely remotely, demonstrating business can indeed go on and remain productive. This could lead to the adoption of remote employees moving forward that otherwise wouldn't have; it could even cause businesses to realize they can open up funds by downsizing office space.

One thing is for sure - we are all going through a learning period that will have major takeaways. It is an incredibly hard time for everyone, but it's worth taking time to try and see the silver linings.

How Do You See Your Industry Changing In The Next 5-10 Years?

The future of banking is digital - there is no question. Right now, fintech companies like Wise are setting a new standard, creating a bridge that traditional banks will need to cross.

In recent years, there's been an ongoing battle between fintech companies and traditional banks. It's a rapid environment - cutting edge technology across all industries continues to change the expectations of consumers and businesses alike. In a world that's increasingly digital, digital becomes expected, making non-digital solutions feel outdated and frustrating. Today, we can order car rides from our phones, grocery shop online from our homes, go to the doctor over a video call - the list goes on. So, why wouldn't digital banking become expected?

What Are The Top Three Most Important Skills A Modern Day Entrepreneur Needs In Order To Be Successful? And What Advice Do You Have For Entrepreneurs Who Are Just Starting Out?

I would say the top three most important skills a modern-day entrepreneur needs in order to be successful are strategic thinking, tenacity, and efficiency. Entrepreneurs need to simultaneously see the whole picture and all the small details that make up the whole picture - they need to be able to see things differently to identify new opportunities, anticipate the future, figure out new solutions. This all comes with the ability to think strategically. I say tenacity because the entrepreneurial life isn't always a walk in the park - it has as many lows as it does highs. Mistakes will be made, unexpected problems will arise, setbacks will occur. Entrepreneurs need to be able to power through and keep the end-goal in sight. And lastly, entrepreneurs need to stay ahead of the game to succeed, and this comes with efficiency - the ability to deliver higher results in less time gives an edge.

My advice for entrepreneurs starting out is to take the leap, pursue something you're a believer in, and to stay hungry. It's okay to leave your corporate job at a big company, even if it comes with more uncertainty and risk. The most successful companies are led by people who truly believe in the business - if you don't genuinely care about what you're doing, then how can you perform your best? It's just as important to stay hungry - hungry to learn, hungry to help the world, hungry for challenges. Stay curious. Stay inspired. And don't forget - it's not about perfection, it's about progress.

Tell Us A Story Of Something That Happened To You That Either Made You Laugh Or Taught You An Important Lesson.

At the inception of our company, we talked with various accelerators looking for the right home to launch from. In a conversation with one well-known accelerator, they said that they would like to meet us 6 months later when we had further defined, and presumably limited, our vision for the company. They felt that we were trying to boil the ocean and were being too ambitious. This was funny to us because isn’t every VC interested in hearing about the big vision and billion-dollar TAM? Yes, we are tackling something big here at Wise, but we have not limited our vision and are chasing it with ever-increasing passion.

If You Can Have A One-Hour Meeting With Someone Famous Who Is Alive, Who Would It Be And Why?

This is a difficult question. I might choose Elon Musk- someone who is a leader in innovation. I'd like to hear about his experience pursuing goals that are a bit controversial and how he deals with major setbacks. I appreciate that he pushes boundaries, has big dreams to change the world, takes risks, and isn't afraid of failure. He is quirky and able to poke fun at himself - I think the conversation wouldn't be boring - that's for sure.

What Is Your Favorite Quote And Why Does It Resonate With You?

One of my favorite quotes has always been said by Aristotle:

"We are what we repeatedly do. Excellence, then, is not an act, but a habit."

This really resonates with me because it has served as a guideline for how I approach achieving my goals. It makes you realize that your big dreams are attainable if you simplify them into a bunch of tasks designed to work towards the bigger picture.

It suggests that you have to take action and that excellence doesn't come from just one occasion or something you do every once in a while. Excellence is achievable in every aspect - it's up to you to build it into facets of your life, always looking to develop your personal growth.

What Does Success Mean To You?

To me, at the highest level, success means happiness. And happiness means different things to different people. To me, it's finding the path that you're happy to pursue every day - to find out what you love to do and not settle for anything less. But it's not just about finding happiness for yourself - success is bringing happiness to others, too. To me, I consider myself successful if I am able to do something that positively impacts others.