What is Transferwise's contingency plan?
So you guys work by using local currency accounts to give out cash, that means your funds in certain currencies are limited. If there was a run on that currency, how would you support/continue business if that account were to run out due to uneven currency trades or regulation issues?
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Kelly Trinh
03 Nov 2019
Backoffice technical at financial services firm
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The use of local accounts means remittances are fast since can utilize local payment systems (eg FAST here, FPS in UK/HK, etc)
With a good flow of remittances, the TW team should be able to work out a balance to hold locally so they can ensure sufficiency with some high probability.
If the get a rush of remittances somewhere, they can do a SWIFT on their own backend (with a tested bank intermediary flow so no unnecessary slowdowns) to replenish - so it would take a little longer for the remittances (few days vs instant/one day) but otherwise wouldn't have an issue.