The upcoming economical crisis caused by the Covid-19 pandemic makes people focus on the financial health of the so far non-profiting fintech companies as Revolut and Monzo are.
The funding sources evaporate and exit options change significantly. Revolut and Monzo have both quickly responded to rumors circulating last week. The rumors suggested they could be going bust as the coronavirus continues to take its toll on the world’s economy.
These claims were based on screenshots of messages which accused Monzo of not paying its staff. Or Revolut accused of being on the edge of going bust. This is being even more fueled by people on Twitter telling customers to withdraw all their cash from the neobanks.
Read also: Revolut finally launches in the United States
“For Revolut it’s business as usual,” says CEO Nic Storonsky
The sources of these rumors included “a friend whose dad works for Monzo”, and an employee at a stockbroker who texted a group chat saying Revolut “was about to go bust”.
Revolut has disclaimed this as “fake news”, and Monzo has assured their customers that it is “here to stay”.
Nic Storonsky continued responding to the wave of viral misinformation on social media. : “The Coronavirus pandemic is causing unprecedented movement in financial markets. Naturally, this can be alarming and can allow rumors and false information to spread quickly. To put your mind at ease, I’d like to make Revolut’s position super clear.”
While Monzo customer’s balances are fully protected up to £85,000 by the Financial Services Compensation Scheme (FSCS) – Revolut does not offer the same security on its customers’ funds, prompting the stockbroker source to say “there’s no guarantee that you’ll get your money back from them”.
Sources: https://www.fintechfutures.com/2020/03/uk-challengers-revolut-and-monzo-combat-claims-they-are-going-bust/ https://www.finextra.com/newsarticle/35504/revolut-and-monzo-refute-rumours-of-imminent-collapse-revolut-launches-in-us