Onyx Private Shifting the business model from B2C to B2B

Digital bank Onyx Private it is reportedly changing its business model and “moving away from the B2C model”.

The company is not closing, CEO of Onyx Private Victor Santos told TechCrunch in va postponement posted on Monday (March 18).

Santos said this when asked by TechCrunch about an email Onyx Private sent to a customer saying the company was ending its services and beginning to close all associated accounts starting March 13, the date of the email, and ending the shutdown in April. 14, according to the report.

He added that Onyx Private’s new business model will include a business-to-business (B2B) platform as a service for financial institutions (FIs) looking to launch digital applications for young, affluent consumers, according to the report.

Santos also dismissed reports that Onyx Private faced regulatory challenges, saying no such issues played a role in the company’s decision to end its business-to-consumer (B2C) offerings, according to the report.

“This was a purely strategic decision that allowed us to leverage the base of existing FIs and leverage the technology we’ve built to scale in a more capital-efficient way,” Santos said in a report.

The news comes about 10 months after Onyx Private raised $4.1 million in a funding round and said it aims to provide private banking and investment services tailored to affluent millennials and Gen Zers, according to a May 22, 2023, postponement by TechCrunch.

At that time, Onyx Private offered banking services in partnership with Piermont Bank; investment services in cooperation with Helium Advisors and Bank of New York Mellon‘with Pershing; and a “lifestyle concierge” service provided through a digital personal assistant.

The company’s goal was to serve lawyers, doctors, tech workers and other wealthy professionals, proving it was a private bank that would “democratize tools that today are only available to the ‘ultra-rich,'” Santos said at the time.

In another recent development in digital banking universe, the UK’s banking as a service (BaaS) platform. Griffin On March 10, it said it had received approval from UK financial services regulators to launch as a fully operational bank.

In January, i2c and Bank of Missouri (TBOM) has come together to help FinTechs create digital banking products. Together, the companies will help FinTechs offer checking and savings accounts, consumer and small business loans, credit cards, rewards programs and virtual cards.

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