Last week, NY Magazine published a controversial article about Daylight, an LGBQT+ focused neobank that had previously been covered by TechCrunch.
The article raised several serious allegations against Daylight’s CEO and founder, Rob Curtis. These allegations included lawsuits, fabrications, and inappropriate behavior, which contradicted the polite executive that some had previously interviewed.
One individual who had tried the bank’s services stated that they didn’t see many benefits or specialization, and the bank was so buggy that they stopped using it.
While the allegations against the CEO of Daylight are still unproven, the controversy is a reminder of the importance of transparency and accountability in the fintech industry.
Corporate Spend Space Continues to Heat Up
The corporate spend space remains a hotbed of activity, with companies like Ramp reporting a fourfold increase in revenue growth in 2022. Curious about other companies in this space, a journalist reached out to Airbase for comment.
An Airbase spokesperson responded that they had grown twofold across several key metrics, including ARR, payment volume, and the number of paying customers. The spokesperson also emphasized that the majority of the company’s revenue was high-margin and subscription-based.
However, some companies in this space have faced criticism recently. Brex, for example, expanded into the travel space, but according to AwardWallet, they have devalued “cash and crypto redemptions by 40% and slashed Brex Rewards point transfer rates to airline partners by over 40%.”
This change came with little to no notice, which left some customers feeling disappointed and betrayed. Although Brex has not yet commented on the allegations, Twitter users have expressed their discontent with the company.
The Importance of Transparency and Accountability in Fintech
These stories highlight the importance of transparency and accountability in the fintech industry.
While the promise of new technology and innovative services is exciting, customers must be able to trust the companies they are doing business with.
Fintech companies must be transparent about their practices, fees, and policies, and they must be held accountable when they fall short of customer expectations.