Lifetime of Achievement: Kristo Käärmann

Kristo Käärmann is the Co-founder and CEO of Wise, a fintech that has transformed the international peer-to-peer (P2P) money transfer space. Born in Estonia, Käärmann's early fascination with technology and mathematics set the stage for the rest of his career. 

Käärmann's interest in technology sparked during his childhood in Estonia. His first computer, a ZX Spectrum, followed by a Commodore 2001, introduced him to the world of coding. By the age of 19, he had launched his first business, Investor.ee, an online investment tracking portal. Although it wasn't profitable, it was popular and marked Käärmann's entry into the entrepreneurial world​​.

After completing his secondary education, Käärmann pursued a Bachelor’s and a Master’s degree in Mathematics and Computer Science from Tartu University in 2002. His academic background set a solid foundation for his technical skills and analytical thinking, which he later applied in his professional career.

Käärmann's professional journey began with roles at PricewaterhouseCoopers (PwC) and Deloitte, where he worked as a management consultant. At PwC, he helped banks and telecommunications companies in Estonia manage and utilise their data, focusing on innovation rather than dealing with legacy systems. This role was crucial in shaping his understanding of financial systems and their inefficiencies​.

At Deloitte, Käärmann further developed his skills, focusing on the implementation of financial systems, data environments and actuarial modelling. He led technology strategy initiatives to support customers with management information and systems architecture challenges in response to Solvency II regulatory requirements. His experiences shone light upon the inefficiencies in Western banking systems and inspired Käärmann to develop a more efficient solution for cross-border money transfers​.

In 2010, Käärmann co-founded TransferWise with Taavet Hinrikus, a former director of strategy at Skype. The company was born out of their mutual frustration with the high fees and poor service of traditional banks for international money transfers. TransferWise's innovative model, which used the real mid-market exchange rate with transparent, low fees, quickly resonated with users, particularly migrant workers in the UK sending money back home​.

“We started Wise to make the best tool for moving and managing the world's money. Part of this mission is to make it cheaper and cheaper for you to use as we optimise away the costs and pass on these savings,” says Käärmann.

Under Käärmann's leadership, TransferWise grew rapidly. The company expanded its services beyond just money transfers, offering multi-currency accounts and debit cards. In 2021, the company rebranded to Wise, reflecting its broader range of services. 

Wise recorded a 24% year-on-year increase in revenue to US$1.3bn (£1.1bn) for its financial year ended March 2024.

Käärmann’s innovative approach and leadership have earned him significant recognition in the fintech industry. In 2015, he was named one of the World Economic Forum’s Technology Pioneers, highlighting his influence on the global financial technology landscape​.

“We continue to grow quickly but sustainably. We remain well-controlled; reinvesting and generating a growing level of profitability,” says Käärmann.

Beyond his professional achievements, Käärmann remains dedicated to education and technology. He and his team at Wise organised an open tech school in the Estonian language for children being homeschooled and helped inspire the next generation of tech enthusiasts.

Kristo Käärmann's journey from a young tech enthusiast in Estonia to a global fintech leader epitomises the spirit of disruptive innovation. Born in Estonia, Käärmann's early fascination with technology and mathematics set the stage for a remarkable career. His visionary leadership at Wise has revolutionised how customers send money abroad, establishing new benchmarks for transparency and efficiency in financial services.

Under Käärmann’s guidance, Wise has significantly lowered the cost of international money transfers, reducing fees to an average of 0.67% and making transactions more accessible for millions of users worldwide. Käärmann's commitment to financial transparency is evident in his statement: "£150bn is the amount people all over the world still pay unknowingly in hidden fees every year”

His innovative approach and relentless pursuit of efficiency have driven Wise to develop faster transfer methods. In Q1 2024, 62% of all transfers were instant, meaning they were completed in under 20 seconds, up from 55% in Q1 2023.

Additionally, Wise's expansion into new markets, such as transfers to Fiji and increased transfer limits to China, reflects Käärmann's global vision.

Kristo Käärmann's contributions continue to resonate globally, not only through Wise’s financial innovations but also through his influence on the broader fintech landscape. His efforts have helped to democratise financial services, making them more affordable and accessible to people around the world. 

As he takes a brief sabbatical to spend time with his family, the impact of his work at Wise endures, setting a high standard for the future of financial technology.

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