Apparently 2 days ago, Malaysia's pioneer robo advisor Stashway users who use bank direct debit to Stashaway had their bank accounts drained in multiples of their direct debit amount.
My friend asked me about it and at first I told him it was usually the problem at the bank side as these direct debit standing instructions are scheduled at bank side but it seemed the problem happened to all banks.
Well, it turned out I was wrong.
The problem seem to originated from their payment partner Curlec, also another payment startup (specializing in direct debit) which just recently got huge funding from 500 startups, a very big venture capital firm.
Stashway was in damage control mode and promised to remit back the funds the next day before noon and gave all affected users 6 months discount on Stashaway management fees. Personally this scale of problem, they should be 12 months discount. I like how Stashaway is handling the issue by admitting fast and pacifying customers with coupons and I believe every problem is an opportunity to grow. However Stashway have to be aware, they are in the finance and banking sector and this industry is all about trust, a slight dent in trust can potentially cause a bank run.
I wasn't affected by the glitch and the glitch would not affect me as I do not keep a lot of cash in my savings account, most of my space saving goes direct to BSN SSPN and other Robo Advisors (Raiz Invest, Wahed Invest, MyTheo, Stashaway) as my digital piggy bank. Generally I don't use direct debit feature, once I got money in my account I will push it directly into other accounts so I don't see the money.
🔗Links
After reading this article and if you want to invest in Stashaway Robo advisor, use my referral link to get discounts off your management fees (it charges). Direct debit on Stashaway has been temporarily disabled for the time being until they have improved on the system. Do not that Stashway or any other robo advisors are not get rich quick schemes, they are also like a savings type of investments (think Allianz Prime Saver), you WILL not get rich putting money into robo advisors but you won't get poorer if you keep cash in bank FDs and mutual funds (exorbitant sales charges).
The company Stashaway is pretty well funded getting USD 16 million ! in capital from Square Peg VC.
My earlier articles on Stashaway robo advisor is here :
My returns so far in Stashaway since their launch :
I have scaled back my risks on all my Stashaway portfolio as I see the COVID19 situation seems more infectious than the 1st wave of COVID19.
Referral Link www.stashaway.my/referrals/jonoav
How to register :
Use my referral code to sign up : www.stashaway.my/referrals/jonoav and get 6 months of management fees waived.
