With fintech companies constantly trying to launch new products in the market, consumers should be more careful with their terms and conditions than they are with traditional banks. There are several reasons for this; I will list a few.

1. Incomplete Infrastructure

Unlike traditional banks that have spent decades building their systems—which can often be very complex and run into weird issues—fintech companies have only been building theirs for a few years. As convenient and straightforward as their platforms might often look, they may not have proper standard operating procedures (SOPs) for edge cases. This means that everything will work better than a traditional bank until you face an issue. Then, you will have to go through a virtual customer support system where you can't explain things the way you would to a real person.

I’m not saying traditional banks don't have these issues; it’s just that a physical presence lends more trust and scrutiny to their business.

2. Uncertainty of the Future

Just as most of these companies have a shorter history than traditional banks, many might also have a shorter future. Most fintech companies run aggressive business models, which is dictated by their nature as startups or early-stage companies. This is not a choice, but a requirement for them to survive and stay in the game. However, these risky moves can result in an uncertain future. When the inevitable happens, being a consumer or user can get complicated. With most things going digital, you might lose access to your historical records or digital data. In the worst-case scenario, that data might be sold to a corporate buyer you don't want to be connected with.

My suggestion is to keep records the old-school way when you use fintech services. Save PDFs or screenshots (especially for promo events) so that if you ever need them one day, you can always trace back to them.

3. Hidden Terms and Conditions

Most people don’t read terms and conditions, and it’s not their fault. There is no way to renegotiate a better contract when you are a single customer dealing with a business, and most of the time, these agreements are highly standardized across the industry. As is often the case with competition, Pareto efficiency doesn’t allow a single company in the industry to write something too far out of line to gain a competitive advantage.

However, as mentioned above, newer fintech companies might be more aggressive here since there is less scrutiny on them from competitors, and part of the cost of running risky operations has to come out from elsewhere.

The case with Neo credit cards

This brings me to my issue with Neo. Neo has a very mixed online reputation, and after my recent incident, I have mixed feelings toward them as well.

Last year, I opened a Neo Cathay co-branded credit card. The welcome bonus combined with my annual spending would earn me two economy seats for transpacific routes. Neo also offers a 5% return at certain merchants when you use the card for the first time or up to a certain dollar amount. I appreciated the promo.

However, the card itself is expensive at $250 per year. Comparatively, an Amex Gold paired with a Cobalt card would offer better value for regular spending.

As the year went by, I noticed I had already been charged the second-year renewal fee. I wanted to cancel the card and go back to my Amex routine, so I messaged their customer support.

"You can cancel the card, but there is no refund or credit for the renewal annual fee."

Those weren't the exact words, but that’s what I was told.

What do you mean by that? Most credit cards or services will offer a refund when a new billing cycle has just begun and there hasn’t been any meaningful usage of the card.

Well, it’s all written in the terms and conditions. Accustomed to and spoiled by the courtesy of more traditional businesses, I guess I had the wrong expectations for an innovative and disruptive company.

Luckily enough, when I inquired about the lack of prior notification for the charge, the agent spent a few minutes working on the backend (I never know what they are actually doing back there), and I was told the fee would be waived for me this time.

So, yeah. Read the terms and conditions, and appreciate any courtesy today that might not be granted tomorrow.