Fintech company Lanistar found itself in deep water last year when it was flagged as a potentially fraudulent company by the FCA. While the warning was quickly overturned, the issues didn’t stop there and negative headlines against Lanistar began to pour in with reports of bullying, harassment, and unpaid wages. As the negative press continues, Lanistar is now in a critical situation whereby they must do or die. So, what’s likely to happen to the controversial company?
The Unfolding Story Of Lanistar
The issues started early on in Lanistar’s journey when the FCA (Financial Conduct Authority, – a financial regulatory body in the United Kingdom) issued a warning stating that Lanistar was not regulated. This warning came after Lanistar’s pre-marketing launch in October 2020, which saw 3000 influencers post a video showing the signature Lanistar payment card.
Notable examples of Lanistar’s influencers include Kevin De Bruyne, Tommy Fury, Amber Rose Gill, Sofia Balbi, and many, many more. The influencer marketing campaign was so extensive that it broke Instagram in Brazil with the channel being shut down due to users thinking that influencers were being hacked.
Moreover, there was a record-breaking 110,000 pre-registration customers in just 72 hours. To put this number into perspective, Monzo gained 50,000 customers in its first year, and Lanistar surpassed this number in just 3 days, so Lanistar’s potential is unquestionable.
After the warning, Lanistar contacted the FCA and upon receiving the reasons (not having an FCA disclosure), this was rectified, and the warning was withdrawn after 36 hours. With such an initial ‘splash’ and Lanistar having had a potential valuation of $1 billion and over a million users, it is no surprise that the company found itself in the spotlight.
The FCA incidents had Lanistar in a precarious position, but the Fintech company was pushed over the edge when seven of its previous employees came forward with their negative experiences of working for the company. There were significant claims made against Lanistar and the leadership team. The stories of bullying, harassment, and unpaid wages plunged Lanistar further into the danger zone, which now begs the question, will it be make or break for the company?
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The CEO of Lanistar, Gurhan Kiziloz, recently gave an interview whereby he acknowledged his mistakes. What happens next is more important as the old saying goes, ‘actions speak louder than words‘, and based on current articles, not all the negative experiences have gone away at the time of this publication.
According to recent reports, Lanistar has taken the following actions.
- Staff wellbeing is a priority for the company.
- Plans are being made to clear all outstanding salary payments.
- Lanistar hosts ‘Motivational Wednesdays’ and Gurhan Kiziloz runs weekly seminars on ‘Achieving Your Goals’. Current employee, Marcello Bernstorff, said that ‘participants in the workshop write down their five-year goals and Gurhan helps them understand what they need to do to achieve them.
- Workplace socials – these alcohol-free events give everyone a chance to get to know their colleagues, forming a tight-knit and supportive community.
- Appreciation is an important value that Lanistar is pushing. The company is trying to ensure that all employees feel valued and that their worth is recognized.
While this all sounds fine and dandy, it is essential to take this information with a pinch of salt. Although it appears as though the company has learned from its mistakes, will they be able to commit to such changes?
Can Lanistar Recover From Its Past Shortcomings?
At some point during the last month or so, Lanistar found themselves in a situation whereby they were forced to either fight or flight – and it seems as though they have chosen to flight. It will not be an easy journey ahead, but the company appears to be heading in the right direction. Current employees are not shy in advocating their support for the company.
It will be choppy for waters for a while, but it will be interesting to see whether Lanistar can keep its head above the surface. CEO of Gurhan Kiziloz seems to believe this is a small obstacle on Lanistar’s road to success, stating:
“We currently sit at just over 1 million registered customers amidst all the controversy and at record speed, this fact allows me to manifest and visualize that the adversity we are facing will only be a small paragraph or a few sentences in our autobiography in a few years.”
A lot of potential customers, current users, journalists, and investors will be reading this and watching Lanistar very closely in the coming months as everyone is thinking the same question, what if Lanistar pulls this off?
