The digital bank N26 is currently struggling with its growth. Phishing scams and customer communication problems could discourage customers and hurt the entire fintech industry.
A very impressive growth
A few days ago, N26 founder Valentin Stalf said in an interview that the digital bank is winning 10,000 new customers every day. Since the beginning of 2019, the flagship digitization digitization bank has been rated over $ 1 billion.
Now it turns out that such a growth does not seem to work without growth pains. For example, customers in forums increasingly report problems with accessibility, and even the new chatbot, which is supposed to relieve the support department, is at least putting its patience to customers with its limited capabilities. In addition, the portal Gründerszene reported a case that is symptomatic of problems that can occur at many banks, but its handling documents how overwhelmed N26 was at least in this case: A customer, the account as an e-commerce retailer on business was used, was evidently unlawfully cleared the account – there was a loss of about 80,000 euros.
However, until the customer was able to notice this due to changed access data, apparently several weeks passed – time in which the customer could contact the bank only by e – mail and chat, because this does not offer a telephone hotline for reasons of economy. And time in which he could not access his account for tactical reasons. Two weeks that can not only be a very long time for a businessman.
Customer confidence for banks especially important
For the customer, this meant great difficulties – and brought him into an explanation shortage to suppliers, creditors and not least his landlord and his staff. Other clients also report difficulties in reaching out to the bank, long waiting times to answer inquiries, and problems of a linguistic nature. All of this is unacceptable for a bank. For customer communication is proven to be one of the most important construction sites for banks and insurance companies when it comes to customer confidence.
It is not necessarily expected of an online retailer or a marketplace that it is always available, but of the bank of trust already. On the other hand, it has just been decided for e-commerce that the establishment of contact does not necessarily have to be possible by telephone. But banking regulators are likely to make more stringent judgments on accessibility in many respects.
N26 itself said that the 400-strong support team is always there for the customer. “We can therefore ensure very good accessibility,” explains the company. Call customers in particular in urgent cases, such as suspected fraud. In the near future N26 wants to be accessible via chat also around the clock, it is said. But to fight N26 has probably also especially with phishing attacks, which is no wonder in view of the enormous growth. Because every company that has reached a certain size is automatically targeted by organized crime, which in this way can capture money more elegantly than in the past. By the end of 2016, a security expert had found vulnerabilities in the N26 app.
N26: Need to catch up with the processes?
Unlike established banking houses, which have many years of experience in fraud prevention and large departments only deal with this topic, especially the digital newcomers fight much more often with their processes – be it security workflows and fraud detection, whether for example with the Munich-based provider Fidor, also with the processes in customer communication. But just long response times can not only annoy customers with normal inquiries, but are a real obstacle in the investigation of crimes even if danger is in default.
N26 emphasizes that one supports the customers in the regulation of their damage, whatever that exactly means – in the concrete case the customer gets the money reimbursed apparently. This hardly provides for confidence and trust, especially since the customer first has to fight for the company to believe him. But the case N26 has even greater scope: It is the flagship company of the fintech industry in Germany and one of the most important players in Europe. Want to say: If N26 comes into disrepute because of irregularities and poor customer service, it will be even more difficult for the entire fintech industry to maintain customer confidence.