A Must-Read FinTech Disaster story (case-study):
Robinhood; the no-fee trading app with 10M+ users & $7B+ valuation; crashed on Monday (2nd March 2020), & after experiencing 17Hours of downtime, recovered on Tuesday.
During this given period the StockMarkets gained $1 Trillion.
As Robinhood users were neither able to buy or sell, this sparked furor & outcry on social media among users.
Some users are now also demanding compensation while others are threatening lawsuits.
This 'DOWNTIME' has not just threatened the exemplary reputation the company worked hard to build, but has also ripped off it's loyal users.
People want access to their money, and when they don't have it, the minimum expectancy is communication, which came very very very late in this case - Robinhood later pinned the outage on instability in a part of their infrastructure that allowed their systems to communicate with each other.
We are in 2020 and High-availability & Disaster-recovery should be the unbreakable backbones for any tech-organization, leave alone FinTech.
I end this article with the following comment by Lalit (founder/CEO, Oxylabs Inc.):
//
I think almost every technology company has gone through similar failures in service. However, as I see it, money is a proxy to Maslow's base layer. If we are asking people to trust us with their financial assets, contingency planning has to be sacrosanct. That being said, we have to make tradeoffs. On one end, there are banks, secure yet high inefficient, on the other are disruptors, moving fast, with a promise of a better, more inclusive future. There are no right answers, just hard tradeoffs.
//
Join the conversation on my Linkedin's post here:
Linkedin.com/posts/kautilya_mustread-fintech-disaster-activity-6641319719100088320-2IQJ
People want access to their money, and when they don't have it, the minimum expectancy is communication, which came very very very late in this case - Robinhood later pinned the outage on instability in a part of their infrastructure that allowed their systems to communicate with each other.
We are in 2020 and High-availability & Disaster-recovery should be the unbreakable backbones for any tech-organization, leave alone FinTech.
I end this article with the following comment by Lalit (founder/CEO, Oxylabs Inc.):
//
I think almost every technology company has gone through similar failures in service. However, as I see it, money is a proxy to Maslow's base layer. If we are asking people to trust us with their financial assets, contingency planning has to be sacrosanct. That being said, we have to make tradeoffs. On one end, there are banks, secure yet high inefficient, on the other are disruptors, moving fast, with a promise of a better, more inclusive future. There are no right answers, just hard tradeoffs.
//
Join the conversation on my Linkedin's post here:
Linkedin.com/posts/kautilya_mustread-fintech-disaster-activity-6641319719100088320-2IQJ
Founders - Vladimir Tenev & Baiju Bhatt
Credit:
https://www.linkedin.com/feed/news/fintech-darling-takes-a-major-hit-4516755/
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