News

'Auf Wiedersehen!': German mobile FI dumps heavy ATM users

June 30, 2016

Number 26, a German mobile-only startup bank, cancelled hundreds of user accounts earlier this month, telling customers only that their accounts would be closed within two months.

After a Twitter-storm of criticism, the bank explained that it had booted cardholders who made excessive ATM withdrawals, and promised to be more forthcoming with information in the future.

A report by Finextra said that the offending account owners had made approximately 15 ATM cash withdrawals per month — a few racked up as many as 30.

Free ATM withdrawals are a customer perk offered by the digital FI. However, due to banking regulations, each withdrawal from a German ATM costs the bank 2 euros ($2.20), fees that could quickly eat up a big chunk of the challenger bank's recent $40 million funding round.

"We cover this fee with the assumption that most customers will use their accounts and this benefit, reasonably," Number 26 said in a statement.