Trade Republic Abolishes Chatbots and Invests in 1,000 Customer Support Employees

At a time when the financial sector is increasingly turning toward automation, artificial intelligence (AI), and chatbots, Germany’s most valuable startup is choosing a completely different approach. Trade Republic, a Berlin-based brokerage application with a valuation reaching €12.5 billion ($13.55 billion), has decided to abandon AI chatbots for customer service. In their place, it is integrating more than 1,000 human representatives to ensure that users can communicate with real people.

Double-Digit Millions for Service Upgrade

To implement this strategic shift, Trade Republic proceeded with an investment in the double-digit millions of euros (exceeding $10.8 million). This amount was allocated for the development of new infrastructure and products, as well as the training of more than 1,000 representatives, who now provide direct assistance to customers in eight different languages. It is noted that the company is collaborating with an external provider that supplies the support personnel in question.

The new system is available 24/7 at no additional cost to users. Through the Trade Republic app, customers can now call and engage in live chat with human representatives. Furthermore, if a query is not resolved immediately, the capability is provided to track the request's progress live within the app itself.

Response to Customer Complaints

This radical change arose as a response to intense criticism the company received from users in its domestic markets of Germany and Austria. According to reports, customers expressed complaints regarding poor accessibility, long wait times, and insufficient support. Trade Republic’s previous hybrid model relied on a combination of AI chatbots and humans, offering only a basic messaging function without the option for direct live chat or a telephone support line.

Christian Hecker, co-founder and CEO of Trade Republic, stated that the company's goal is to become the long-term "home" for the entirety of its customers' assets. As he emphasized: "Our customer service has been designed entirely from scratch. At its core are trained representatives who can provide personalized assistance. Our goal within the next twelve months is to offer the best customer service of any bank in Europe." The company currently operates in 18 European countries and has more than 10 million customers.

Against the Market Trend

Trade Republic’s decision stands in stark contrast to the general trend within the fintech and banking industries. Many companies, such as Starling Bank and Revolut in the United Kingdom, are investing significant amounts in AI, developing financial AI assistants.

However, Trade Republic is not the only one recognizing the limitations of artificial intelligence. Last year, Klarna CEO Sebastian Siemiatkowski admitted that his company’s focus on cost reduction through the use of AI in customer service had led to lower service quality. As a result, Klarna was forced to proceed with mass hiring to ensure that its customers would have the option to speak with a real person.