The $11 Billion Skype Call: How Two Friends Beat the Banks

At a Glance: The Rebellion Stats

| Metric | Details |
| :--- | :--- |
| Founders | Taavet Hinrikus & Kristo Käärmann |
| Original Name | TransferWise |
| The Spark | Losing 5% of their salary to bank fees |
| First Office | A sauna in Estonia (Legend says) |
| Current Valuation | ~$11 Billion+ |
| The Mission | "Money without borders" |

The Hook: The "Legal Robbery"

Imagine you earn $1,000. You go to the bank to send it to your family, and the bank takes $50 just for touching it. They don't tell you they took it; they just hide it in a "bad exchange rate."

In 2011, this wasn't called a scam. It was called "banking."

Two Estonian friends living in London, Taavet and Kristo, were tired of it. They realized that every month, the banks were essentially stealing a chunk of their salaries. So, they decided to hack the system.

The Origin: The "Skype" Connection

Taavet Hinrikus wasn't just a random guy. He was Employee #1 at Skype. He knew how to use technology to bypass expensive phone lines. Now, he wanted to bypass expensive bank lines.

The problem was simple:

• Taavet lived in London but was paid in Euros (from Skype in Estonia). He needed Pounds to buy groceries.
• Kristo worked in London and had Pounds, but he had a mortgage back in Estonia that needed to be paid in Euros.

Every month, they both used traditional banks to swap money, and every month, they both lost huge amounts to fees.

The "Aha!" Moment: The Human ATM

One day, they had an idea.

"What if we just... swap with each other?"

They checked the real exchange rate on Reuters (the one banks use, not the one customers see).

1. Taavet transferred his Euros directly into Kristo’s Estonian bank account.
2. Kristo transferred his Pounds directly into Taavet’s UK bank account.

Total cost: $0.
Total fees paid to banks: $0.

It worked instantly. They had just invented "Peer-to-Peer" money transfer without writing a single line of code. It was just two guys trusting each other.

The Struggle: "No One Trusts You"

They knew this could be a business. They named it TransferWise.

But when they launched, nobody trusted them. Why would you give your money to two random guys in London instead of Barclays or HSBC?

Investors laughed at them. They said, "Banking is a relationship business. You are just a website."

They struggled to get their first licenses. Regulators didn't understand how they could move money without actually "moving" it across borders. (The secret: The money never actually crosses the border. It just swaps pools, exactly like their first experiment).

The Turning Point: The "Naked" Stunt

To get attention, they had to be radical.

They realized their enemy wasn't just fees; it was hidden fees. They launched a marketing campaign called "Nothing to Hide."

The founders—and massive groups of their employees—literally stripped down to their underwear and ran through the financial districts of London and New York.

It was shocking. It was weird. But it worked. The press went wild. The headline was clear: "Banks are stripping you clean. We have nothing to hide."

Suddenly, they weren't just a finance app. They were a movement.

The Result: The New King of Cash

Today, that little experiment is known as Wise.

• They move over £100 Billion every year.
• They save customers over £1 Billion a year in bank fees.
• They went public in a direct listing valued at nearly $11 Billion.

And the best part? The big banks that laughed at them are now scrambling to lower their fees just to compete.

3 Lessons for Founders

1. Solve Your Own Itch

Taavet and Kristo didn't do market research. They didn't hire consultants. They just solved a problem that was hurting their own wallets. If you are angry about a problem, millions of other people probably are too.

2. Marketing Can Be Free (If You Are Bold)

Wise didn't have a Super Bowl budget. They had courage. Running in their underwear cost $0 but generated millions in free press. Don't be afraid to be controversial if it proves your point.

3. Transparency is a Weapon

In an industry built on secrets (finance), honesty is the ultimate disruptor. Wise told people exactly how much they charged, down to the penny. When your competitors are lying, telling the truth is a revolutionary act.