Best practices for not losing everything with online finance

• There are many tempting offers to grow your savings through online finance.

• But the practices are sometimes illegal or involve hidden risks.

• 20 Minutes

  helps you see more clearly.

Tens of thousands of euros evaporated.

For some, the savings of a lifetime have skyrocketed.

Since this summer, several former customers of the Lille-based “fintech” Swoon have been in the midst of a nightmare.

The neobank, created in 2018, was liquidated last August.

In September, its founder promised to reimburse everyone in the long term.

Two months later, the money is still not there.

“For the moment, we have gathered around a hundred injured savers, with a total loss of more than one million euros.

And new cases are arriving every day, ”testifies Michel Guillaud, president of the consumer defense association France Conso Banque.

This story illustrates the dangers of online finance and the pitfalls behind sometimes too tempting offers.

To avoid such a mishap,

has compiled some advice from professionals in the financial sector.

Tip 1: Watch out for "miracle" rates

We said just before, be very suspicious when you come across a financial product that promises high profitability. "You have investments that can reach 4% or 5% profitability without being fraud," explains Michel Guillaud. But in these cases there is always a risk of losing your initial bet ”.

In the case of Swoon, the start-up nevertheless praised a "savings book" at 3%. A wording echoing the regulated booklets (booklet A type), and therefore likely to give customers confidence. “You should know that the rates offered by the bank books of traditional banks are currently less than 1%. It is therefore unlikely that a real bank offers guaranteed and risk-free savings accounts with a remuneration of 3% or more, ”explains

the Prudential Control and Resolution Authority (ACPR)

to

. It further specifies that the company did not have the right to offer such a product anyway, because it did not have the necessary authorizations.

“The term neobank has no legal basis,” continues the ACPR.

There are different statutes, including online banks, called "credit institutions", and payment institutions.

The latter have a limited field of activity since they can only offer to open a payment account, without overdraft, allowing to make transfers and to pay with a bank card with immediate debit.

If you are not a bank, you cannot offer savings products or grant credit ”.

Tip 2: Check the approvals with the competent authorities

When a new player aims to invest your savings, it is always prudent to check the approvals he has. In Swoon's case, one company was hiding another. On the one hand, “Swoon SAS”, an application that made it possible to manage current accounts (placed in a real bank). On the other, the “Guarantee Financial”, a structure supposed to manage the famous savings accounts.

This entity was declared as a “non-exclusive agent in banking operations and payment services”. It was therefore absolutely not authorized to directly manage funds as could a traditional bank. "Obtaining an approval, whatever it is, often makes it possible to arouse the confidence of consumers and to bait them", observes Michel Guillaud. To avoid a bad surprise, you can consult the blacklist established by the financial authorities and which is regularly updated. “In 2020, out of the 1,081 entries on the blacklist, almost all of the fraudulent offers identified concerned false loans or savings accounts” indicates the ACPR. You can also check the Regafi and Orias registers,which identify the establishments authorized to market banking or insurance products.

Tip 3: Beware of guarantees

The rule is simple: only customers of banking establishments who contribute to the Deposit Guarantee Fund (FGDR) are covered for their accounts, passbooks or savings plan - up to 100,000 euros - in the event of bankruptcy.

As for payment institutions, “they must place their customers' sums in a restricted account, located in an approved bank.

These funds must also be separated from those used for the expenses (salaries, rents, etc.) of the payment institution.

In the event of bankruptcy, customers' money is not in danger since the payment institution is only an intermediary, ”explains the ACPR.

In general, "when faced with an offer, take the time to think it over and never give in to the urgency or the pressure of your interlocutor", continues the supervisory authority.

“Be careful with new players,” adds Michel Guillaud.

Find out in particular the solidity of the shareholder (s) before you start ”.

Justice

Scams: Investing in cows, grands crus or rare earths is a bad idea

Economy

Can we encourage the French to spend their “Covid” savings without a new tax?

• Scam

• Finance

• Saving

• Bank

• Economy

• 0 comment

• 0 share

  • Share on Messenger

  • Share on Facebook

  • Share on twitter

  • Share on Flipboard

  • Share on Pinterest

  • Share on Linkedin

  • Send by Mail

• To safeguard

• A fault ?

• To print