Can Chocolate Finance rebuild trust post withdrawal blunder?

Financial services firm Chocolate Finance's CEO, Walter de Oude, has taken to LinkedIn to address the recent suspension of its instant withdrawal on 10 March. In his statement, de Oude explained that even small decisions can have big consequences, mentioning that the newly launched HeyMax Miles partnership was designed to be groundbreaking.

For those unfamiliar, the HeyMax Miles partnership allowed users to earn Max Miles on everyday spending, including groceries, dining, bills, and more. However, the volume of bill payments through AXS, far exceeded expectations and made the program unsustainable. To keep the program running, Chocolate Finance worked with AXS to disable the Chocolate Card.

As demand for withdrawals surged, Chocolate Finance eventually suspended instant withdrawals, citing "high demand." This was communicated through a notice on its mobile app, where the company stated that it was experiencing an unusually high volume of withdrawal requests.

"But it happened so fast we communicated this change poorly," said de Oude in a candid post on LinkedIn. "Our initial FAQ mistakenly implied AXS initiated the change, which we quickly corrected. Customers using AXS were frustrated by the sudden removal. This led to negative reviews, increased withdrawals, and overall negative sentiment," he added.

The CEO then concluded his statement with the lessons he's learned. "Transparency is really key in building trust, and making sure that communications are well timed, relevant and detailed. I’ve also learned that offering a freebie that you know to be unsustainable is not a great way to build long term trust and relationships. Running Chocolate Finance has been an incredible journey so far and we’re just getting started," said de Oude.

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He added that growth comes with challenges and hard lessons, and the experience "has been a humbling reminder that disrupting an industry means constantly learning, improving, and adapting, and bringing everyone along the journey with you".

"Mistakes happen - own them, learn, and improve. All businesses, big and small can learn from this. I certainly have and Chocolate Finance will be stronger because of it," he added.

While the mistake definitely left a lot of consumers frustrated, PR professionals MARKETING-INTERACTIVE spoke to said that de Oude's post was a step in the right direction for rebuilding trust.

"One thing de Oude did really well was taking full ownership of the situation. He didn't hide behind corporate jargon or PR spin; he admitted the mistake, apologised and explained exactly what went wrong. You can tell it was written by him, not his comms teams or AI-generated responses," said Manisha Seewal, group president at Redhill.

Seewal, who was a former marketer and worked with the likes of tech companies such as Carro, explained that authenticity makes a huge difference, especially in a crisis. She added:

The key takeaway here is when things go wrong, own up to it. Be transparent, be human, be visible and communicate in a way that builds trust rather than eroding it. That’s how you turn a crisis into an opportunity to strengthen customer relationships.

A swifter response was needed

While de Oude's statement was appreciated for its transparency and honesty, some felt that the response could have come sooner. "The statement about what happened was perceived as too corporate and self-centered," said Lars Voedisch, group CEO of PRecious Communications. He added that calling it  'A lesson learnt' - instead of going straight to a genuine apology in a way closer to the brand’s usual tone could be seen as ingenuine.

Voedisch said:

During a crisis, you have to get it fast, get it right (fix it) and then get it out (communicate).

"Now, the brand is in a defensive situation. Best would be to fully own the situation. Sincerity might be more powerful than detailed finger pointing as that might be perceived as deflecting instead of owning up," added Voedisch.

Oliver Ellerton, director at Ellerton & Co. Public Relations pointed out that the one issue was the swiftness of Chocolate Finance's responses and a lack of coordination.

"Complaints had been bubbling up on Telegram and among affiliates even before media coverage intensified. Chocolate Finance could have responded even more quickly," said Ellerton. This in turn allowed speculation and uncertainty to spread unchecked.

A notable example of this misalignment was when one of Chocolate Finance’s investors Qin En Looi stepped in to address concerns publicly before the CEO did. Looi's social media post came hours before the CEO’s official statement on March 10, raising questions about whether Chocolate Finance had a clear communication strategy in place, explained Ellerton.

"In crisis situations, companies typically follow a structured playbook: Apologise (if at fault), clarify the source of the mistake, get information out quickly, provide reassurance, and overcommunicate to regain control of the narrative. The CEO’s statement eventually adhered to this approach. It was honest, well-structured, and detailed, but by the time it was issued, some of the damage had already been done. This delayed response allowed uncertainty to fester, making it harder to rebuild trust," said Ellerton.

He added that Chocolate Finance needed to get ahead of this narrative immediately and proactively reassure users before panic set in. Instead, the delayed response allowed concerns to escalate.

Clearer communications needed

Similarly, Seewal said that the biggest issue was the lack of upfront, clear communication when customers first started experiencing withdrawal issues. "Chocolate Finance could have done much better in handling this situation. Instead of proactively addressing the problem with clear communication, it waited until panic had already set in before releasing a statement—making the response feel reactive, rather than proactive," she said.

"The biggest blunder? The AXS FAQ mix-up. At first, the brand claimed AXS had asked for the card to be blocked, only to later change its stance and say that it was actually Chocolate Finance that requested the card to be disabled. That kind of inconsistency erodes trust and leads to panic. In situations such as these, any miscommunication, especially around access to funds, creates unnecessary panic," explained Seewal adding that:

When financial services fail to provide a straightforward, unified response, customers start to assume the worst. And in a high-stakes industry such as fintech, that’s a dangerous place to be.

Following news of the suspension, Chocolate Finance has been thrown into the center of netizen discourse. The firm gained 802 total volume and 4,772 social engagement in just one day, according to media intelligence firm Truescope.

The incident garnered significant user concern and negative sentiment towards the brand, with users taken aback by the suspension, disappointed by the company's removal of AXS payment support and perceived unclear communication surrounding service charges. Analysis by Truescope also found that users expressed worry over their fund accessibility, and that the situation prompted a "bank run" where withdrawal requests increased.

Similarly, media intelligence firm CARMA found that sentiments of conversations related to Chocolate Finance are 5.8% positive and 36.9% negative. Users also questioned the long-term viability of Chocolate Finance's model, citing the mismatch between promised returns and underlying investments. Some brough tup the importance of understanding the risks associated with Chocolate Finance, emphasising that it is not a bank and lacks SDIC protection, said CARMA.

To rebuild trust, Seewal is of the opinion that Chocolate Finance needs to be radically transparent. The timeline the company provided also left room for uncertainty, said Seewal. Instead of saying “3-10 days,” which creates anxiety around the unknown, it should have committed to a fixed timeframe, such “10 days or earlier.” Being firm in its messaging would have reassured customers that the situation was under control, she added.

Customers don’t just want to know that there’s an issue—they want to understand exactly why it happened, what’s being done to fix it, and how Chocolate Finance is making sure it won’t happen again.

Photo courtesy Chocolate Finance, Facebook.

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