28 May 2017
Book a meeting today

Mobile bank Number26 faces Twitter outcry over hundreds of cancelled accounts

01 June 2016  |  10562 views  |  3 hipster suit with phone

European smartphone-only bank Number26 is facing a Twitter backlash after cancelling the accounts of hundreds of customers, many of whom claim to have been given no explanation.

The German-based challenger, which is hoping to cash in on customer dissatisfaction with traditional banks, now operates in seven counties and claims more than 150,000 users.

Yet in the last few weeks the company has begun sending out emails to customers telling them that their accounts have been cancelled and will be closed within two months.

In a statement, Number26 says that the cancellations notices have been sent to a "few hundred" people, adding that "in the context of our fast growth, the number of affected accounts is insignificant".

The firm insists that there is a reason for each closure but that it cannot comment on specific cases for data protection reasons.

But the claim that the closures are just normal practice has been given short shrift on Twitter, where customers are expressing their bemusement and anger.







KeywordsSOCIAL MEDIA

Comments: (3)

A Finextra member
A Finextra member | 02 June, 2016, 16:29 Does the 26 refer to the companies lifespan in months?
2 thumb ups! 2 thumb ups! (Log in to thumb up)
Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 02 June, 2016, 18:09

PayPal freezes merchant accounts arbitrarily (from merchants' p.o.v). Now a fintech bank disables customer accounts equally arbitrarily (from customers' p.o.v). This is just early stages of fintechs using Big Data to take highly granular decisions at individual customer level. But we can't complain: After all, the digerati was exhorting banks to use data. They were daydreaming if they thought fintechs would do it for customer's benefit.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Hitesh Thakkar
Hitesh Thakkar - FIS Payments Software and Services India - India | 06 June, 2016, 10:49

Banking services are business services leveraged by both parties (Fintech and customer/s) for mutual benefit. Either party has rights to call it for day based on it's business KPI.

Customers do close their accounts for various reasons and churn so better check on what parameters have changed which resulted in this churn.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Number26 adds in-app access to TransferWise API as startups gang up on banks

Number26 adds in-app access to TransferWise API as startups gang up on banks

25 February 2016  |  11287 views  |  0 comments | 14 tweets | 16 linkedin
Smartphone-only bank Number26 expands across Europe

Smartphone-only bank Number26 expands across Europe

03 December 2015  |  11098 views  |  0 comments | 28 tweets | 28 linkedin
Number 26 gets EUR10m in funding from Peter Thiel's Valar Ventures

Number 26 gets EUR10m in funding from Peter Thiel's Valar Ventures

16 April 2015  |  7231 views  |  0 comments | 7 tweets | 4 linkedin
Number26, a smartphone-only banking service, launches in Germany

Number26, a smartphone-only banking service, launches in Germany

26 January 2015  |  19786 views  |  1 comments | 23 tweets | 32 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.events.sap.comvisit www.response.ncr.comVisit www.capgemini.com/worldreports

Top topics

Most viewed Most shared
BBVA launches Open API marketplaceBBVA launches Open API marketplace
14097 views comments | 53 tweets | 81 linkedin
Bank/fintech collaboration can take transaction banking to new heightsBank/fintech collaboration can take transa...
8032 views comments | 12 tweets | 24 linkedin
R3 raises $107mR3 raises $107m
7513 views comments | 16 tweets | 16 linkedin
TransferWise launches multi-currency business bank accountsTransferWise launches multi-currency busin...
7320 views comments | 12 tweets | 21 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job