Fintech firms may be outpacing traditional banks in terms of innovation, but they are also vying for the less desirable title of most complaints, according to recent data.
The Financial Ombudsman Service (FOS) has revealed that Monzo and Revolut lead the fintech sector in customer grievances, as reported by City AM.
Both companies have seen their customer bases surge to over 10 million users in the past year, but this growth has not been without its issues.
Here are the top five UK fintechs that received the most complaints in the second half of 2024.
Revolut
Revolut, one of the industry’s giants, unsurprisingly topped the list.
The company received 3,397 complaints in the last six months of 2024, all of which were categorised under banking.
This was a slight increase from the 3,193 complaints it received in the first half of the year.
In 2024, Revolut posted pre-tax profits exceeding £1 billion for the first time, following a 72 per cent surge in revenue to £3.1 billion.
The fintech firm’s global reach now extends to 52.5 million users, surpassing Europe’s largest lender, HSBC.
Monzo
Close on Revolut’s heels was Monzo, with the London-based digital bank receiving 3,396 complaints, almost all of which fell under banking.
Complaints related to mortgages and home finance, general insurance, and investments each accounted for a single complaint.
This figure represents an increase from the 2,843 complaints lodged in the first half of 2024.
Monzo and Revolut have been thrust into the spotlight alongside FTSE 100 banking titans due to an uptick in complaints lodged.
Wise
Wise, the consumer and business transfer firm, reported 945 complaints, marking a decrease from 1,220 earlier in 2024.
Focused on international money transfers and multi-currency accounts, Wise is one of the fintech firms poised for a highly anticipated IPO.
It was mentioned by The Times as considering a FTSE 100 slot, and has confirmed it is “extensively consulting with shareholders on the optimal listing arrangements.”
Starling
Meanwhile, Starling, a trailblazer in the industry, received 731 grievances, rising from 572 at the year’s start.
Licensed by the Prudential Regulation Authority and Financial Conduct Authority since 2016, Starling boasts roughly 4.2m customer accounts encompassing both retail and SME customers as of 2024.
Zopa
Zopa saw a robust 2024, doubling its profit and expanding its office space, while managing to maintain fewer complaints than its peers, with 419 logged in the latter six months compared to 369 previously.
Following their April full-year results, Zopa Bank informed City AM of its trajectory to surpass its ambitious “2025 Fintech Pledge” aimed at generating “25m positive actions” that bolster financial resilience, set to be achieved ahead of schedule next month.
In 2022, the digital bank, in collaboration with fintech firm ClearScore, launched an initiative aimed at assisting Brits in combating the cost of living crisis.
The strategy included measures such as reducing monthly bills, improving credit scores, and transferring savings to accounts with higher interest rates.
