Your statement is misleading..
WISE:- Not a Bank, Not FSCS Protected:
Wise Payments Ltd, the UK entity of Wise, is not a bank and therefore doesn't offer the Financial Services Compensation Scheme (FSCS) protection, which is typically available for customers of licensed UK banks.
Safeguarding Customer Funds:
Instead of FSCS protection, Wise safeguards customer funds by:
Segregation: Keeping customer money separate from Wise's own business funds.
Cash Deposits: Holding customer deposits in cash with top-tier financial institutions like Barclays and Citibank.
Secure Liquid Assets: Investing in secure liquid assets, such as government bonds in the UK, US, or EU.
Regulatory Obligations:
Wise follows strict rules set out by regulators in the countries where it operates to ensure the safety of customer funds.
No Lending:
Wise doesn't lend out customers' money, which is why FSCS protection isn't applicable.
Security Measures:
Wise also implements various security measures, including a dedicated fraud team, two-factor authentication, and regular audits.