Digital financial institution Onyx Private is reportedly altering its enterprise mannequin and “shifting away from the B2C mannequin.”
The corporate isn’t shutting down, Onyx Non-public CEO Victor Santos advised TechCrunch in a report posted Monday (March 18).
Santos mentioned this when requested by TechCrunch about an e mail Onyx Non-public despatched to a buyer, saying that the corporate was discontinuing its providers and starting to shut all related accounts beginning on March 13, the date of the e-mail, and would finalize the shutdown on April 14, per the report.
He added that Onyx Non-public’s new enterprise mannequin will embody a business-to-business (B2B) platform-as-a-service for monetary establishments (FIs) that wish to launch digital apps for younger, prosperous shoppers, based on the report.
Santos additionally dismissed a report that Onyx Non-public confronted regulatory challenges, saying no such points performed a job within the firm’s resolution to shut its business-to-consumer (B2C) choices, per the report.
“It was purely a strategic resolution that allowed us to leverage the bottom of current FIs and use the know-how we’ve got constructed to scale in a extra capital-efficient method,” Santos mentioned within the report.
This report comes about 10 months after Onyx Non-public raised $4.1 million in a funding spherical, saying it aimed to offer personal banking and funding providers tailor-made to prosperous millennials and Gen Zers, based on a Could 22, 2023, report by TechCrunch.
On the time, Onyx Non-public provided banking providers in partnership with Piermont Bank; funding providers in collaboration with Helium Advisors and the Bank of New York Mellon’s Pershing; and a “life-style concierge” service delivered by way of a digital private assistant.
The corporate aimed to serve attorneys, docs, tech employees and different prosperous professionals, proving a personal financial institution that might “democratize the instruments that at this time are solely out there to the ‘extremely wealthy,’” Santos mentioned on the time.
In one other current growth within the digital banking area, British banking-as-a-service (BaaS) platform Griffin mentioned March 10 that it had acquired approval from the U.Ok.’s monetary providers regulators to launch as a completely operational financial institution.
In January, i2c and The Bank of Missouri (TBOM) partnered to assist FinTechs create digital banking merchandise. Collectively, the businesses will assist FinTechs provide checking and financial savings accounts, shopper and small enterprise loans, bank cards, rewards packages and digital playing cards.
