Pay for your money to be held securely

Fintech has revolutionised the way that we use money. Cash is used less and less as people use their mobile phones for purchases and to transfer money. Traditional banks have closed their bank tellers and replaced them with a row of ATMs. This has annoyed some but for most, there is no need to go into a bank branch anymore, most transactions can be done on your phone.

At the head of the charge in Europe is Revolut. They have changed they way we transfer money. Previously you had to get their bank details, set them up as a payee on your banking app and then transfer the money. With Revolut, it’s as simple as sending a text message. And no more foreign exchange charges when you go abroad. Moving money around has never been so easy…or so cheap.

The fintech revolution isn’t just for banking but it is also for investing. You no longer have to open an account with a stock broker, you can set up a low cost online account and trade yourself without the need for someone to actually place the trade for you.

When you pay little or no cost for something, the company is saving money somewhere. A BBC programme on Revolut found that it has concentrated on growth over security and it the most complained about bank to the UK regulator.

There has been lots of cases reported of people being scammed and money emptying out of their Revolut account. These victims then have difficulty in getting in contact with Revolut to report it…while they see money being taken from their account. They eventually get a web chat facility and get told that the payments are unauthorised. This is another saving, cut down on your biggest expense…humans.

Again, it is not just Revolut. Low cost online trading accounts cut back on the number of employees they have too. There are reports of people transferring money to low cost broker, Trade Republic, to avail of their competitive deposit rates. But the money doesn’t arrive. When they try to contact Trade Republic, they get a bot!

Imagine how frustrating and worrying it is if you have transferred tens of thousands of euro to an account only for it to go missing. And when you try to find out where it is, you get automated messages?!! You don’t know if anyone is actually looking for your money and you can’t get through to anyone to see what is happening.

When it comes to the security of your money, paying for that extra piece of security is money well spent. I pay €6 a month for my Bank of Ireland current account. Considering how often I pay for things on my phone and online banking, that’s nothing.

I also know that if there is suspicious activity on my account, they will block it (as I found on holidays last year when trying to buy a pair of runners for my son in France) and that if I need to speak to someone, I can get in speak to someone quickly.

AI is developing all the time and security experts predict that financial scams will only increase as a result. You want your financial providers to have robust systems in place and an approach that will rectify issues as quickly as possible and be on your side.

Steven Barrett

04 November 2024