Loot goes into administration

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There’s too many fintech cards around , it’s going to be interesting seeing who lasts

Article from TechCrunch:

Is there anypoint in Fintech that offer prepaid Mastercards when Monzo, Starling & N26 are about with a more complete offering?

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Generally I’d say no, apart from Revolut, who I’d argue have a quite unique offering.

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Never a good time to face redundancy but their 60 staff are probably going to get gobbled up in seconds by much better companies, so I don’t feel too heartbroken about this.

Now if you’re a steelworker in Scunthorpe at the moment then I really do empathise.

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I wonder what RBS was actually doing here? Shouldn’t they be partnering and acquiring to help themselves convert their legacy technology into fintech?

From the sounds of it they’ve thrown a few quid at Loot and then cut and run very quickly seemingly without gaining anything.

The skeptic in me wonders if Bó is going to suddenly have 60 new employees and a decent app.

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Wonder how many extra customers this might mean for Monzo and how they will distinguish these from those primarily attracted by the new TV adverts

Loot has been on the scene for a long time, but does anyone actually know someone who uses one reguarly?

Their front page says ‘2.7m transactions with Loot’ - that seems like a very low number. If you had, say, 10,000 active users making 10+ transactions a month, you’d rack that up in just over a year.

It’s a shame that Loot has gone into administration, but also not wholly unexpected.

At the time of the article they had 200,000 users

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That article and the RBS funding was only a few months ago. I wonder what changed in that time?

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That hints that on average each user has only used the card 10 times (taking the 2.7m transaction stats from their website). That feels like incredibly low engagement with the product, and a lot of money spent shipping out cards to people who never use them.

Be interesting to see more metrics and how these compare with others.

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I remember seeing this advertised a lot - there was a waitlist to get it which made it seem quite popular. Their card looked quite nice imo.

Couldn’t really compete with Monzo and the likes though because it was only a prepaid card.

The only good thing about Loot was the seethrough card design similar to N26 card with more colour. Their app was basic and needed updates.

Now a Monzo card in coral seethrough would be awesome.

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be interesting to see if those 200,000 CX move to another non traditional bank… I guess it depends on how many of those used it as a novelty or was full Loot…

There are so many of the prepaid card style accounts and I don’t think Loot really has a USP so it’s not surprising. The question is more why did RBS invest and how (as the tweet says) did they pass Seedrs investigations?

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This same topic is on a few different forums now but I haven’t seen a single person saying “what happens to my money that I have in Loot?” or even mentioning that they are a user of Loot. Certainly never seen #FullLoot tagged anywhere.

Is it reasonable to assume that they had virtually zero actual users?

They could come out and say they have 250k users but who is actually verifying this and should we believe it because it has been said? If Viola Black announce they have 456,789 users now, should we believe that?

Personally I don’t believe Loot had anywhere near the 6-digits of real users.

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The details are on their homepage. The money is held in a separate account so it won’t be able to used to pay back debts. I think that’s a pretty standard setup.

If they were aiming at students I can’t imagine many using it as their main account with much money. Not only are students usually in debt, the traditional banks offer interest free overdrafts so a student would probably have an account with them anyway.

It is with regret that we are informing you that Henry Anthony Shinners and Adam Henry Stephens of Smith & Williamson LLP, 25 Moorgate, London, EC2R 6AY were appointed as joint administrators of the Company on 22 May 2019. Your e-money is protected and held by Wirecard Card Solutions Limited at a regulated credit institution. Your funds will not be used by Loot or Wirecard Card Solutions Limited for any other purpose. You are still able to continue to use the account as normal. We are working with the administrators and we will announce further updates here in due course. In the meantime, if you have any questions please email us at loot@wirecard.com

I tried Loot a few years ago. It wasn’t really up to much then and still isn’t now (even before entering administration). Haven’t used in ages so I’d argue there’s merit in your point about shipping a ton of cards out and them not being used. They just didn’t develop the product. As soon as you had a basic app to view transactions and set a budget, app development seemed to grind to a halt.

On a side note - does anyone else find it slightly ironic that they operate a blog called ‘SKINT’ :joy:
https://skint.loot.io/

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On Thursday last week I spent 570 online from my loot card. The next day I get the notification that everyone with loot got saying that to fufill regulatory requirements no in payments will be made into loot accounts but other than that accounts will still work. The online order got cancelled due to not being in stock. The website says the payment was never taken just reserved from my loot account. Still not got the money back. Any advice?