A digital banking alternative, Revolut, is making waves in this virtual world. It is promoting itself as a smooth and low-cost option for money transfers, travel expenses, and even crypto trading. While it may seem attractive, many Australians have reported major concerns about it. It is not fulfilling the requirements of many Australians because of the poor customer service. It has earned a reputation for the problems that cannot be ignored.
This article discusses why Revolut is bad for some Australians, presents major concerns, and provides some alternatives that Australians can consider.
What is Revolut?
Revolut is basically a fintech and technology company that provides a range of financial services to customers through software, including its mobile banking app, financial services, and expense tracking software. It initially started operating in 2015 and extended to over 200 supported countries, including Australia, in 2019.
The main objective of Revolut is to focus on the technology, and therefore, it employs many software engineers. But its core operation is to offer a comprehensive range of financial products and services, not merely software engineering.
Inside Revolut: Core business strategies
Revolut positions itself as both a fintech and a tech-driven company. Its main features include:
1. Fintech and tech-based company
Revolut is renowned as a fintech (financial technology) company. It delivers its financial services by using software. It depends greatly on software and technology to work and perform financial services.
2. Mobile banking app
The main service that Revolut offers is its mobile app, which helps customers manage their finances, send and receive money, and engage with varied financial services.
3. Financial services
Revolut offers a wide range of financial services. Some of which are:
- Banking products and accounts
- Transaction processing
- Cryptocurrency services
- Regulated investment schemes like stocks and ETFs
- Expense tracking software
4. Program manager
Revolut also serves as a technology service provider. and program manager for its card programs, with banks frequently providing the actual cards and possessing a permit for banking services.
Why Revolut is bad? Potential causes
It is generally safe to use Revolut in Australia, but it is crucial to note that it is not a bank. In fact, it is an electronic financial institution. Many Australians have expressed their concerns regarding the poor customer service of Revolut. Because of some negative comments, it is generally perceived as bad. The following are the reasons for its negative perception:
1. Lack of a full banking licence
One of the major concerns regarding Revolut in Australia is that it does not possess a full banking licence. Rather, it works under a collaboration model with local banks and payment providers.
- This means your money is not secured by the same government guarantee that relates to deposits in the customary Australian bank.
- If something goes sideways, you could be left vulnerable, as compared to the banks included in the Financial Claims Schemes.
- Australians concerned about their peace of mind may see this as a lack of security and may be disturbed by it.
2. Poor customer service
Another big issue with Revolut is its customer service. Its customer service is frustrating its customers with an over-reliance on automated responses and digital assistants.
- Many Australians have commented on long delays to actually speak with a service professional.
- Complex issues, like frozen accounts, frequently remain unresolved for days or even weeks.
- Unlike local banks, Revolut has no physical branches where you can seek help.
The services of Revolut often seem unresponsive and unreliable for Australians who are used to accessible banking support
3. Hidden fees and unclear charges
Revolut advertises itself as a budget-friendly platform. But many customers commonly complain about the hidden fees and vague charges.
- Some foreign transactions come with added charges, particularly on weekends or outside market hours.
- Correspondent bank fees may be included in the international transfers and are not clearly disclosed.
- Exclusive plans frequently recommend a more expensive version that most of the Aussies don’t actually want.
While Revolut may seem less expensive initially, it may come with some hidden fees.
4. Account freezes and security issues
One of the major concerns of Revolut is the issue of account freeze and security. If Revolut finds any suspicious activity, it will freeze the account, occasionally without any warning.
- Australians have expressed their frustration with being locked out of their accounts during their international trips, and as a result, they can’t access their money.
- People may cut off, as the appeals process can be agonizingly slow.
- It also makes people more frustrated as the careful compliance verification is frequently applied erratically.
So, Revolut can create inconvenience for Australians depending on it during international or business trips.
5. Cryptocurrency risks
Revolut also promote features like crypto trading, which may not be appropriate for everyone.
- Crypto trading has higher transaction costs than specialised exchanges.
- Users usually don’t fully possess the crypto. In many cases, they are confined to trading within Revolut.
- This can lead to surprise threats for Aussie beginners to investing.
Therefore, an exciting feature may burden customers with expenses or volatility.
6. App vulnerabilities
Research into fintech apps found that Revolut’s mobile app had one of the highest numbers of detected flaws compared with other digital banking platforms, raising concerns about reliability.
Alternatives for Australians
There are many alternatives available for Australians looking for a better option than Revolut. Some other options are:
- Wise (formerly known as TransferWise): It is often less expensive and a much more transparent option for international money transfers.
- UP Bank: UP is an Australian Bank that is legally used as a digital bank, complete with PayID, BPAY, and great customer service.
- Big four banks: The big four banks in Australia, CBA, ANZ, NAB, and Westpac, are the safest options for secured deposits and are reliable.
These alternatives frequently offer enhanced protection for the consumers and better integration with the Australian system.
Conclusion
In short, Revolut is not fundamentally a ‘bad’ option, but customer experience can differ markedly. Customers may experience problems of poor customer service, hidden fees, account freezes, security issues, lack of a full banking licence, cryptocurrency, or app vulnerabilities. While it offers many interesting and useful features, it also comes with major drawbacks for its customers. Australians who value reliability, security, and direct service would be more comfortable selecting a local bank or an established money transfer service.
