4 ms·
Revolut has had a fee questionable moments already, this does not seem to have been the case for other European fintech operations (wise, klarna, n26 etc). So
by riffraff 3y ago
Revolut has had a fee questionable moments already, this does not seem to have been the case for other European fintech operations (wise, klarna, n26 etc).
So yeah, I think a lot of fintech is not particularly good, but I don't think we can generalize to the level of the crypto boom.
- bboygravity 3y agoYou might want to try the search term "N26 locking customer accounts for no reason with no recourse".
- zx8080 3y agoWhy do they do it? Is it a reaction on regulator critique, or a plain "let's lock this account up to take some money" dumb (or smart?) profit-generation?
- brnt 3y agoIt's the cheapest form of KYC: don't have them at all.
- bboygravity 3y agoMy best guesses: 1. A dumb money laundering detection algorithm that does it's thing with 0 human interaction (basically the same reason people get locked out of their Google accounts for no reason). 2. Untrained and insufficient customer support (again similar to Google). 3. In my case: asking for documents to prove residency (they're supposedly legally obligated to do so,, but none of my other banks ask for this). The documents they ask for cannot be produced by someone who shares an appartment in the EU (no bills in my name, no rent receipts in my name, no address on ID cards). Game over. Account and card blocked. 0 flexibility from customer support, 0 help.
- zx8080 3y agoDo they require the additional docs when you top up the account or when try using those money/transfer out?
- bboygravity 3y agoThey require the docs only for transferring out. So you can still receive money, but you cannot access it.
- zx8080 3y agoVery profitable business. I remember Paypal doing the same in 2008-2010 (I stopped using them after they locked acc and stole some hundreds dollars).
- detaro 3y agoN26 has been in trouble with its national banking regulator repeatedly, although mostly for lack of effective anti-fraud measures.
- dogma1138 3y agoThe FCA (UK regulator) is also refusing to issue them a banking license, even a challenger bank one. It is still operating under their Lithuanian banking license. I really don’t understand why so many people in the UK use it as the deposits are not FSCS protected so if something goes wrong you’re fuck out of luck.
- toyg 3y agoIt always was a very simple way to handle remittances for European migrants, and to get travel money for everyone else. Some people then got carried away, probably because their PR was always pretty good. I had to warn a friend of mine who kept 5-digit savings in there. He didn't know about the lack of banking license (and this was even before they got the Lithuanian one) and was pretty shocked.
- CoastalCoder 3y ago> I really don’t understand why so many people in the UK use it as the deposits are not FSCS protected so if something goes wrong you’re fuck out of luck. I wonder if this is the kind of lesson that needs to be re-learned every few generations?
- detaro 3y agoThe last high-profile UK example isn't that long ago (icelandic banks last time)?