Everything via app: Neobanks: Where digital accounts reach their limits
Neo-banks rely on apps and lure with free accounts. But customers should think beforehand about what they're getting themselves into.
The consumer protection agency Verbraucherzentrale NRW warns that while neobanks may offer free services that appeal to young people, there are also downsides to consider. To access their accounts, customers need a smartphone and must use an app, which can cause difficulties if the device is lost or stolen. Neobanks often encourage cashless transactions and may not be part of ATM networks, making it hard or expensive to withdraw cash, with limits and fees applying to debit or credit cards.
Additionally, customers may lack personal support, relying on chatbots for help with issues like hacked accounts or stolen credit cards.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
