Social Media Uproar
Neobroker Trade Republic has recently been inundated with a wave of angry comments on social media, with customers complaining about missing dividend payments in their accounts. The issue gained prominence last Friday when the Berlin-based fintech launched a giveaway on Instagram to celebrate the start of the UEFA Euro 2024. Customers were promised a chance to win a stock or ETF worth up to €1,000 on each of the 22 match days, simply by following the broker’s account, liking the posts, and answering a question in the comment section.
However, instead of enthusiastic participation, the posts were met with a barrage of criticism. Users expressed their frustration over the delayed dividend payments. One comment read, “Instead of sharing giveaways, you should focus on paying the outstanding dividends to your customers.” Another user added, “At least provide some information on the dividend issue to reassure us.”
The Cause of the Delay
The delay in dividend payments, according to comments from around a hundred customers on platforms like Reddit, has been causing significant unrest. Dividends are typically distributed by companies through their respective depository banks to shareholders. At Trade Republic, these payments have reportedly been overdue for over a week.
Customers noted that the broker had been unresponsive to support queries and had not issued a public statement, exacerbating the situation. One Instagram user commented, “Dear Trade Republic team, mistakes can happen to anyone. But this is turning into a real communication disaster.”
Trade Republic’s Explanation
In response to an inquiry from Finance Forward, Trade Republic confirmed the issues on Monday morning. A spokesperson explained that a system update had caused some dividends to be processed a few business days after the payout date, rather than in real-time as usual. This delay had affected dividends from companies like DWS and Porsche in the current quarter. The fintech assured that all outstanding dividends would be processed and credited by the end of the day on Monday.
Some customers reported receiving their dividend payments on Monday morning, which aligns with Trade Republic’s statement. However, the fintech did not disclose the total number of affected customers.
Community Reaction
Trade Republic emphasized that they are one of the few brokers in Germany that processes transfers and dividends in real-time, which is a service their customers have come to expect. Legally, the company asserted that all dividends were paid within the required timeframe.
While this may be legally correct, the incident highlights the swift and public nature of feedback from Trade Republic’s large and active social media community. The company’s initial lack of response under the Instagram giveaway post likely added to the confusion and uncertainty among users.
Conclusion
The recent issues with dividend payments at Trade Republic underscore the importance of timely and transparent communication with customers, especially in the age of social media where feedback is immediate and public. The fintech has taken steps to address the issue, but the incident serves as a reminder of the high expectations and scrutiny faced by digital financial service providers.