In the highly competitive world of challenger banks, where trust and security are paramount, setting up a financial institution requires meticulous attention to detail. From stringent KYC (Know Your Customer) protocols and top-tier AML (Anti-Money Laundering) practices to seamless payment processing, obtaining a banking license involves navigating complex regulatory requirements.
However, one challenger bank has recently been subject to customer complaints regarding its payment and account opening processes, and that bank is Kroo. Kroo has successfully secured its UK banking license, which deserves acknowledgement. The road to obtaining such a license is fraught with challenges, and the bar is set high to ensure the integrity and security of the financial system. So, why has Kroo faced criticism? According to reports and numerous Google reviews, a selection of which are shown below, Kroo’s stringent measures have left some customers disgruntled:
“Avoid at all costs. Small claims court letter issued.”
“Absolute joke of bank, only used it as a second bank so only relatively small amounts went through, one payment I received when I sold an Xbox got send for review, now my account is locked, can’t access my money, no reply to communication, it’s coming on to a week now and not heard a thing, they don’t respond on chat.”
“Ridiculous bank… every other bank you can change your address within seconds from the app… this bank you have to provide documentation (bills, etc.) with your new address… so if you’ve moved recently you have to wait weeks.. or if you’re a lodger, tough luck. Useless… account closed.”
“I totally agree with some of the comments. I won’t recommend this bank to anyone. I am now a PhD student and two weeks ago I was supposed to pay my tuition fees. My parents sent me the money and you can guess what happened: the bank told me it’s a ‘big amount’ of money and there were several transactions, and then my account was frozen WITHOUT ANY explanation. It’s been two weeks, I am at the edge of mental breakdown because I literally put almost all my money: not only the tuition fees but also my salaries, accommodation fees into the account. Thanks to their being ‘too’ responsible, I’m close to being a homeless because I can’t even pay for my uni hall fees. Avoid this bank if you want to keep your money safe.”
“Hugely overzealous’ responsible bank’ ‘reviewing’ of transactions with very poor customer service to follow up. Withheld an incoming transaction of £200 from a friend and asked for details of the sender (Inc their DOB) to review the transaction. Should I really be sharing personal details (if I have them) of people who may not be customers with this bank? They’ve since sat on my money for 4 days without so much as a reply to my response message.”
“This so called bank has had my money on hold for over 5 weeks and counting! Review department is non customer facing so you can’t talk to them! Absolutely shocking service from a bank!”
“3 times my money has been held in the ‘ether’. Very slow to respond to messages. I’ve been waiting 4 days for them to reply to me and release my money. Abysmal. If you’re picking this bank for the interest rate, same yourself the stress and go elsewhere.”
To understand why Kroo appears to take this overly zealous approach, we must first get to know Kroo’s founder, Nazim Valimahomed. Although Nazim is no longer a director at Kroo, he still retains a prominent role and is often quoted in the press as the main spokesman for the bank.
As Nazim went to great lengths to build the company after claiming that he was “disenchanted with the terrible banking experience in the UK“, it may be worthwhile to try to examine how familial connections may have jaundiced his view of banks per se and informed the decisions Kroo takes when dealing with new customers and their day-to-day payment needs. Nazim’s original opinion of the banking system may be based on the havoc that his brother Nooreddin has wreaked on multiple banks over the last twenty-plus years.
Nooreddin Valimahomed, founder of Lotto Billions, is a notorious scammer and con man with a track record of borrowing, losing, and defaulting on loans and debts across various international banks. This must be a source of immense embarrassment for Nazim and will have afforded him a front-row seat in the financial debacles that have dragged his family name through the mud.
Whilst Nazim cannot help sharing a name and genetic connection with this grifter, he can try to protect his business and make sure that the bank he has worked so hard to create does not make the same mistakes as those that were brought to their knees by Nooreddin and his financial shenanigans.
It is bad enough having Nooreddin as a brother, but the fear of inadvertently accepting a customer like him must play on Nazim’s mind. It could spell disaster for Kroo, jeopardizing its otherwise successful journey.
While Kroo’s excessive security measures may be irritating for some, understanding the possible underlying reasons – tied to family history and the desire to maintain a sterling reputation – may foster more understanding and forgiveness among customers navigating the bank’s stringent procedures.
