- Financial Ombudsman Reveals Small Online Bank With Most Complaints is Revolut
- Revolut’s fellow fintech bank Monzo were second on the list
No small online bank generated more complaints to the Financial Ombudsmen Service than Revolut. Newly released figures reveal that the fintech bank was the most complained about institution of the newly-emerging sector, although complaints about Revolut and other fintech banks are dwarfed by the amount of complaints made about the big, established banks in the UK.
However, in relative terms, this should be a cause for concern for Revolut, which has two million customers. Figures were obtained by the Financial Times by way of a Freedom of Information request and they show that a total of 117 complaints were made about Revolut in the period between 2015 and 2018.
The bank has seen rapid growth since being established in 2015 and much of their problems have arisen from the fact the speed of that growth has come at the expense of customer services.
Customers have complained that the only means of contacting the bank to raise concerns is through an instant messaging service, which has a slow response time. The company have said they are keen to address this issue by establishing a phone line for customers.
In response to the figures about complaints, Revolut said in a statement:
We take every complaint seriously and always aim to deliver an exceptional experience to our two million UK customers. Having been operational for longer than our competitors and with a more diverse and innovative product offering we would expect to experience some complaints.
While our rate of complaints is very low proportionate to our customer base, we are fully committed to improving services and will always do all we can to ensure customers have no reason to complain.
Revolut was launched four years ago and currently holds a banking licence in Lithuania, but has been able to successfully expand to an international market. That expansion, however, has not come without problems and they have faced criticism from consumer groups in the UK and even authorities in Lithuania have cast an unfavourable eye on the bank.
However, as the company point out themselves, the amount of complaints in proportion to their overall customer base is still quite low and the kinks that have been a by-product of their rapid growth can be ironed out as they establish themselves in what is itself and ever-expanding market.
Monzo - Second Most Complained About Online Bank
Revolut’s fellow fintech bank Monzo were second on the list of most complained about online bank with 82 complaints.
Fintech is a shortening of the term ‘financial technology’ and is used to describe institutions like Revolut and Monzo. They generally offer current accounts and business accounts and pride themselves on being more convenient and quick ways of banking.
Their paper-free approach also makes them more streamlined than old, established banks, but the likes of Barclays and Lloyds have invested a lot into online banking over the last few years in a bid to meet customer demand for convenience and flexibility.
Fintech banks like Revolut and Monzo may have stolen a march in this regard, but they have still experienced difficulties as these complaints show.