Wise founder’s fortune soars after epic FTSE surge!

The Fintech Billionaire Who Was the Year’s Biggest Stock Winner

In a year where many investors experienced gains in the stock market, fintech billionaire Kristo Kaarmann stood out as the biggest winner in London. Kaarmann, the co-founder of Wise, saw the value of his stake in the payment firm increase by over £600 million since January 1, reaching a total of £1.65 billion. His shareholding has made gains at an average rate of over £1.6 million a day in 2023.

Despite his success, Kaarmann is currently under investigation by the Financial Conduct Authority (FCA) for undisclosed reasons. The City watchdog is examining the circumstances of a six-figure fine he received over his personal tax. This investigation has not deterred investors, though, as Wise shares rose about 57% throughout the year.

One factor contributing to Wise’s success is higher interest rates, which have lifted the firm’s gains from cash balances held by customers. This has allowed the company to offer higher returns to clients and attract more deposits. With the rise in interest rates, Wise is also looking to pay back clients with higher account balances.

Kaarmann, who is 43 years old, owns about 18% of Wise, which is currently valued at £9 billion. Despite the investigation and potential regulatory issues, Kaarmann’s stake in the company has secured his status as the year’s biggest stock winner in London.

This success story highlights the thriving fintech industry, with Wise being a prominent player in the space. The company’s ability to leverage technology and offer efficient and cost-effective payment solutions has made it popular among consumers and investors alike. While regulatory investigations can pose risks to companies in the financial sector, Kaarmann’s success underscores the resilience and potential of fintech firms.