lucy banks
A Perth business owner, Lucy Banks, has publicly criticized online financial service Wise after her business account was unexpectedly blocked from receiving funds. The incident, which lasted for several days, has sparked a conversation about potential discrimination within financial institutions.
Banks, 34, had opened a business account with Wise to manage finances for the upcoming Adult Industry Choice Awards in November, an event heralded as the “biggest night in Australia’s adult industry.” Wise, known for its online-only operations, facilitates international money transfers across various currencies.
The decision to use Wise was influenced by Banks’ need to avoid the inconvenience of traditional banking, especially as a working mother of three. She had integrated her Wise card with Apple Pay and used the account for her business expenses until she encountered a significant issue on October 14.
Account Block and Allegations of Discrimination
On the morning of October 14, Banks discovered she could no longer receive payments. Initially attributing the problem to a technical glitch, Banks contacted Wise’s support team via their app’s live chat. She was informed that recent activity on her account might have breached Wise’s card processing agreement, resulting in the inability to receive payments by card.
The restriction severely impacted Banks’ ability to secure sponsorships for the awards, a primary reason for opening the Wise account. “It is so wild and frustrating because I’m not doing anything illegal and everything is above board,” Banks expressed.
Banks suspects her association with the adult entertainment industry and a recent sponsorship payment from a strip club led to the account limitations. Despite transitioning from OnlyFans to a marketing and PR role within the industry, she feels targeted by the financial service.
“It is just really frustrating and it felt like discrimination,” Banks told news.com.au. “I am five weeks out from an event and I went with Wise in the first place because it was online and really easy for me.”
Resolution and Financial Industry Challenges
Following media coverage of Banks’ ordeal, Wise restored her account access on October 16. In a statement, Wise explained their regulatory obligations require due diligence reviews of account activity. They attributed the delay to overlooked communications with Banks.
“As a regulated financial institution in Australia and around the world, our dedicated teams must conduct necessary due diligence reviews of account activity,” Wise stated. “Unfortunately, this appears to be a situation where our communications were overlooked, leading to an extended delay in resolving the feature’s availability.”
Despite the resolution, Banks remains dissatisfied, feeling “pushed out” of the institution. She has since withdrawn all funds, expressing anger over the account restrictions and maintaining her innocence.
Broader Implications and Industry Perspectives
Banks’ experience highlights ongoing challenges faced by individuals in the adult industry when dealing with financial institutions. She argues that the industry faces systemic discrimination, with no official financial institution openly accepting sex workers.
“There’s no official institution that says ‘we accept sex workers’, there is none – we all run the risk of having our accounts shut down,” Banks stated. “Imagine if banks were like, ‘We are no longer servicing hairdressers’ – people would be up in arms!”
Experts in financial services and discrimination law suggest that while financial institutions have the right to enforce policies, transparency and communication are crucial to avoid perceptions of bias. The incident underscores the need for clearer guidelines and support for industries deemed “risky” by traditional financial standards.
As the situation unfolds, Banks and others in similar positions continue to advocate for fair treatment and recognition within the financial sector. The conversation around financial discrimination against the adult industry is likely to persist, prompting calls for reform and greater inclusivity.
