BBC shares stories of Revolut client’s scam
The UK news recently shared interesting cases — a number of Revolut users reported that their accounts had been hacked and they had fallen victim to online fraudsters.
If we examine the situation in more detail, we may say that such cases are not uncommon, and for neobanks, this is even a widespread issue. Users reported that their account login details had been stolen and funds had left their accounts within minutes. At the same time, account holders reacted promptly and attempted to contact Revolut's support service, but they did not receive timely assistance. Thus, it became clear that the procedure for contacting the company in emergency situations is flawed, and Revolut announced the creation of a new three-digit phone number that will be available at all times. This number can be called in case of urgent issues related to security.
At the same time, such a sharp reaction was likely triggered by the publicity of Revolut owner and the company itself. It has grown significantly over the last years and such cases are not in favor of the brand. However, it has long been widely known that accounts in similar online banks are most often at risk of theft or being used for illegal purposes. Because of this, many users are not willing to hold large amounts on their balances and use online fintech only as a convenient payment mean, but not as a real bank where they can store finances. This is a significant blow to the industry's reputation and a serious problem: how can one compete with physical banks under such conditions?
The struggle between neobanks and traditional banks has been ongoing since the inception of the neobanks. The traditional banking has consistently hindered development of online entrepreneurs and expressed distrust of institutions that "are not on the map." A bank must have a branch — this is what many bankers believe. If we look at this from a practical perspective, the convenience of branches is quite questionable: not everyone wishes to go to the bank to resolve basic issues, and queues and lengthy service add even less desire to do so. So, does the presence in a building really give clients more confidence in the future?
For the audience under 35, the answer is almost obvious — younger generation prefers to resolve all issues remotely. This means that neobanks will not only stay but will further strengthen their positions. Shouldn't they, in that case, be more concerned about the security of clients' accounts?
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