Following the travails at Revolut and Wirecard, another fintech starlet - N26 - has landed itself in hot water with the regulators over lax management practices.
The app-only bank is reportedly being probed by German regulators following complaints about fraudulent transactions and deficiencies in customer communications.
The issues were first raised by German newspaper Handelsblatt in October, prompting Bafin to to launch a probe which has allegedly uncovered numerous shortcomings.
According to Handelsblatt, customer complaints of fraudulent transactions were either ignored or not responded to for several weeks. Users said they were unable to get a response through N26's chatbot or by email, which were the only means of talking to staff.
Bafin's investigation uncovered problems in staffing, outsourced task management and engineering, according to reports.
N26 says it has tripled the number of staff in its customer complaints division in the past year and will respond to other issues in consultation with regulatory authorities.
Other high growth startups in the fintech space have been under intense scrutiny in recent months following allegations of fraudulent accounting (Wirecard), AML deficiencies (Revolut) and - in Revolut's case - a toxic management culture.
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