UK Financial Technology Shares Wise (LSE: WISE) has had a hard few months. After rising to almost 11 pounds in mid-April, it has dropped to below 8 pounds.

Is the offer valuable at its current level? I think so – I think Wise stock is a bargain today.

The bull case

Looking at this company from an investment perspective, there is a lot to like. For starters, it offers really great service to its customers.

I’ve personally been using Wise for international money transfers for over a decade and wouldn’t apply any other provider today. I’m always amazed at the speed of transfers (when I transfer money from Australia to the UK it arrives in about five seconds) and I’m very elated with the transfer fees (which are negligible).

It is worth noting that Wise uses a business model based on “shared economies of scale”. This means it continually reduces its fees as it becomes larger and more effective.

This type of business model is a great way to retain customers. Other companies that have used it include: Amazon AND Costco – two of America’s greatest corporate success stories.

Secondly, it is a truly scalable company. Looking ahead, it has the potential to acquire tons of novel customers, offer novel products to existing customers, and see growth through B2B transactions with other institutions.

It’s vital to remember that while many people apply Wise today, it really only scratches the surface in terms of its potential. For international personal payments, its market share is only around 5%, while for miniature business transfers it is less than 1%.

Third, its financial results are impressive. For example, revenues have increased from £964m to around £1.8bn over the last three years.

Profits also increased. It should be remembered that the return on capital employed – a key measure of profitability – is very high.

Failure

Now, like any business, it’s not perfect. The company has recently received negative press for money laundering.

While Wise takes money laundering very seriously (about a third of its employees are focused on stopping financial crimes), it appears that criminals in Europe have recently begun using its network to make illegal payments. As a result, regulators in Brussels are looking into the company (this is what caused the share price to drop).

Of course, this development increases the risk of investment. However, it seems to me that Wise is doing everything in his power to put an end to this type of activity.

In the update, the company stated that:

• Verifies customers before opening an account
• It continues to monitor hundreds of data points in real time as customers apply its products
• Proactively reports suspicious activity to law enforcement
• Releases clients when necessary
• Continuously invests in technology-enabled systems and teams to stay ahead of constantly evolving threats

So I would be very surprised if the Brussels prosecutor’s office imposed a high penalty for lack of control. Ultimately, Wise takes his responsibilities very seriously.

Low valuation

Currently, after the recent decline in share prices, the forecast price-to-earnings ratio (P/E) here is only 20. I believe this is an attractive valuation, considering the company’s growth potential and attractive financial results.

There are risks associated with the Brussels investigation (and investor sentiment during it). However, considering the horizon of three to five years, I see great potential, which is why I believe that the shares are worth taking a closer look at today.

Is it worth investing £5,000 in Wise Plc now?

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Edward Sheldon owns shares in Wise and Amazon.