Banks and TransferWise are engaging in a competition within the payment services provided by fintech companies.

In the rapidly evolving world of finance, traditional banks are increasingly looking to digital solutions to compete with fintechs, particularly in the area of cross-border payments.

HSBC's Global Money Account, for instance, has been designed to rival TransferWise's Borderless Account. Both services are mobile-based, enabling customers to hold and manage funds in real-time for cross-border payments without fees. Similarly, Santander's PagoFX offers the same benefits, expanding its service to the India corridor.

Hello Bank, a European digital bank, operates banking products that include current accounts in five European countries. It offers free worldwide payments to its French customers, and India-based digibank provides zero-fee remittances as part of its current account features. Canada's Simplii Financial also joins the list with similar offerings.

Wells Fargo's ExpressSend is another digital offering specifically designed for consumers with remittance or cross-border payment needs. However, not all standalone digital offerings by established banks have been successful. Some, such as JPMorgan Chase's digital bank Finn and NatWest's Bó, have discontinued their services after a short run. NatWest, for example, focused instead on its SME-targeted digital bank Mettle.

These digital offerings often have innovative features, lower overheads, and are targeted towards millennials. They aim to pair the innovation of fintechs with the security and trust of established financial institutions. However, the road to success is not always smooth. Banks like Postbank, which closed its standalone digital offering named "Finn" last year, can attest to this.

Despite the challenges, the trend towards digital banking continues. Banks, including HSBC, Santander, and others, are launching digital offerings to keep pace with the changing landscape of finance. Cross-border payments is a key product feature for some players in these digital offerings, making international transactions easier and more affordable for consumers.

Banks and TransferWise are engaging in a competition within the payment services provided by fintech companies.