With rapid growth comes growing pains, and fresh data from the Financial Ombudsman Service (FOS) suggests some of the fintech giants are also leading in a less favorable area – customer complaints.
The State of Fintech Complaints
According to the FOS, and reported by City AM, Revolut and Monzo led the pack in customer complaints, closely followed by Wise, Starling, and Zopa. While these tech-centered banking solutions continue to grow in popularity, the surge in complaints highlights key operational challenges that fintechs are facing as they scale.
Why Are Complaints Rising?
The surge in complaints isn’t necessarily surprising given these companies’ meteoric growth. Both Revolut and Monzo saw their customer bases swell to over 10 million users in the past year. With such rapid expansion, service levels, systems, and processes within these companies can occasionally struggle to keep pace, especially when addressing the complexities of banking.
The Most Complained-About Fintechs
Revolut
Revolut, the fintech behemoth, claimed the top spot, receiving 3,397 complaints in the second half of 2024. This marked an increase from the 3,193 recorded in the first half of the year. All complaints fell into the banking category, reflecting issues with account access, payment processing, and customer support.
Despite this, Revolut had an exceptional year in terms of growth. The company exceeded £1 billion in pre-tax profits for the first time, with its global user base expanding to 52.5 million, surpassing even Europe’s largest banks in scale.
Monzo
Trailing Revolut by just one complaint, Monzo recorded 3,396 grievances during the same period. Like Revolut, most complaints were linked to general banking issues, though there were isolated instances related to mortgages, insurance, and investments.
The increase from the 2,843 complaints in the first half of 2024 signals the operational pressures intensified by Monzo’s growing user base. However, it’s worth noting that Monzo continues to innovate, with a heavy focus on customer-centric solutions.
Wise
Wise, specializing in international money transfers and multi-currency accounts, ranked third with 945 complaints. This was a notable improvement from the 1,220 complaints lodged in the first half of the year.
The decline in complaints comes as Wise prepares for a potentially game-changing IPO and continues to enhance its services with shareholder-backed innovations. Despite the complaints, Wise remains a preferred choice for cross-border payments, largely due to its cost-effective and transparent fee structure.
Starling
Starling, a trailblazer in the digital banking space, recorded 731 complaints, up from 572 earlier in the year. With around 4.2 million customer accounts in its ecosystem, the company continues to expand its retail and small business offerings.
While the increase in grievances marks a challenge, Starling remains a respected brand due to its commitment to innovation and its focus on customer experience. Its longevity and reputation as an early fintech pioneer keep it a trusted name in the industry.
Zopa
Zopa may have doubled its profits and office footprint in 2024, but it also saw a rise in complaints, with 419 recorded in the latter half of the year compared to 369 in the first. However, Zopa stands out for keeping complaints significantly lower than its peers.
The neobank’s dedication to enhancing financial resilience has built a loyal user base, and initiatives like their “Fintech Pledge” aim to empower consumers with tools to lower bills and maximize savings. Zopa’s steady growth and relatively small number of grievances reflect a positive trajectory for both customer satisfaction and operational success.
Prioritizing Customer Satisfaction for a Lasting Legacy
For all their innovative solutions, UK fintechs like Revolut, Monzo, and Wise face a growing challenge in meeting customer expectations at scale. With complaints on the rise, these companies must strike a delicate balance between growth, innovation, and meeting service demands.
Ultimately, the fintech firms that can adapt quickly and prioritize customer satisfaction will set themselves apart in this fiercely competitive industry. While complaints might grab headlines today, the actions these companies take to address them will define their legacy in the years to come.
