Not extrapolating uk market. The article mentions ‘Second is our subscription model. Depending on the market, up to 32 to 35 percent are choosing one of the premium products that we’re offering’. Reading again, I have interpreted incorrectly - the article doesn’t suggest an average subscription rate of 32-35% across all markets, but definitely seems like there are more than one market where subscription is at 32 to 35%.
Regardless, the subscription model seems to be good business for challengers. N26 and Revolut have both stated that premium accounts are a key revenue driver for their business, other challengers like Monese also adopts this model.
N26 asked for a screenshot and they claim it won’t affect my credit score, I’ve explained it will and they’re escalating it. They’ve also said this is normal practice for all German banks.
For me it is a principled thing - it’s not necessary or clear that it’s happening. And plenty of people will be looking to apply for things like mortgages.
On this note - I can’t see any searches whatsoever on Noddle/Clear Score/Equifax - is it just Experian they use?
I had a hard and a soft check on my credit file (on 8/1/19) but personally not too bothered. It can have that much of an impact but N26 should explain why they did a hard check…
This issue here is one of trust in N26’s word. My understanding is that they explicitly said they would not be performing a hard credit search - then performed one. Unless I’ve read it wrongly, that is what I take from @nickh here:
If that is correct, I’d expect an apology from N26 and a reversal of the searches made.
While @j06 makes an interesting point about whether the hard search actually matters, that’s subsidiary to the issue of trust, I think.
Mortgages don’t actually look at your score too much - It’s more a case of “disposable income” when going through all of the affordability bits and pieces.
Although I’d still rather a strong “made up” score, than a weak “made up” score.
I am having my chat history sent via email, and will be escalating this through N26.
(I should add that this is probably cock up rather than conspiracy, but it’s the little things like this that, if uncorrected, can really damage a brand).
Talking to them again now… and I’m being transferred to the UK team on the web chat… more news as I get it…
Edit:
Response from “Joseph” (who’s in the UK support team)
“Thanks for raising this. I’ll note your details and refer to our Specialist team. This is being looked in to and as soon as I have an update, you’ll be informed via email. I’m sorry for any concern caused with this.”
Edit 2: should note… not asked for screen shots or anything…
