Digital Banking

Mobile-Only Bank NUMBER26 Faces Customer Backlash

Mobile banking

There are 26 letters in the alphabet, and it may be the case that mobile banking tech outfit NUMBER26 may be called a string of words that have four letters each.

As reported on Wednesday (June 1), the German mobile bank, which Forbes stated wants to become “the new hub for digital transactions,” allegedly cancelled several customer accounts without warning or satisfactory explanation.

Users, said the publication and various social media accounts, were informed that they should move their account balances to other institutions, and the hue and cry from those affected were heard via Twitter.

The firm sent out emails to certain customers in recent weeks, telling them that their accounts would be closed within two months. This after a number of reports pegged growth at healthy rates and said the firm had an installed base of about 150,000 users. The firm also said that the cancellations affected only a “few hundred” people and that, “in the context of our fast growth, the number of affected accounts is insignificant.”

NUMBER26 has said there is a reason tied to each closure but that the company is unable to speak to specifics.

Late last month, in an interview with Forbes, management stated that the aim has been to become an integrated stop for digital payments and banking and other financial services.



Digital transformation has been forcefully accelerated, but how does that agility translate into the fight against COVID-era attacks and sophisticated identity threats? As millions embrace online everything, preserving digital trust now falls mostly on banks and FIs. Now, advances in identity data and using different weights on the payment mix afford new opportunities to arm organizations and their customers against cyberthreats. From the latest in machine learning for fraud and risk, to corporate treasury teams working in new ways with new datasets, learn from experts how digital identity, together with advances like real-time payments, combine to engender trust and enrich relationships.

Click to comment