U.K. digital bank Revolut is at it again: the digital bank has introduced a new fee, this time for its premium clients. And all the while, further managers have decided to leave.
The picture that emerges is a pretty somber one: Revolut, one of the world’s highest-valued fintech companies, is grabbing the headlines for all the wrong reasons.
In recent weeks and months, finews.com has reported on a company, where numerous high-ranking bankers have left, where the way of going about their business smacked more of bad old habits and where employment and firing practices spoke volumes.
A few days after the bank notified users of free accounts that they would no longer be exempt from fees after all, Revolut also contacted fee-paying clients. The letter was also seen by finews.com.
Fees Go Up, Cashback Down
The «Premium»- or «Metal»-clients, who currently are paying 8.99 francs or 15.99 francs per month for the services of Revolut, will have to fork out even more starting August 12. The increase will be quite substantial as well, depending on the frequency of the use of service.
The fee-payers will also be asked to pay 4 francs or 6 francs per transaction abroad, depending on whether the currency is used in the country of receipt or not – but, other than for the free-account holders the fee applies only from the second payment each month. The clients will also have to pay a forex fee over weekends of 1 percent, double the amount charged so far.
Fewer Freebies Available
The company also has put a lid on the cashback function, with the maximum amount reimbursed at 15.99 francs per month if the client is using the metal card. And, starting in August, an additional such card will cost an extra 50 francs.
Revolut will also do away with other freebies for its prime clientele, including the free entry to airport lounges or concierge function for access to tickets and hotel nights.
Insurance – for Clients in the European Economic Area
At least, Revolut promised to expand the insurance coverage, but this won’t help Swiss clients as it applies to the European Economic Area only. And the customer service in future will cancel transactions that clients have erroneously made.
Revolut has seen a series of top staff leave in recent months, and the leaking continues, according to a report by «Financial News» (behind paywall). Sinead Daly, head of diversity and inclusion at Revolut, and Neridah Jarrett, head of HR management, have both left the firm.
Also, Revolut has cancelled its contract with the PR company it had hired in April 2019 with the task of repairing its reputation. A spokesperson of the PR firm told «Financial News» that Revolut considered taking a more direct and proactive approach in the way it communicated.
