US digital banking startup Onyx Private is closing customer accounts in a strategic pivot to a B2B business model.
Miami-based Onyx Private provided banking and investment services for high-earning millennials and Gen Zers, promoting itself as a "next-generation UBS".
In a March 13 email to a customer viewed by TechCrunch, with a subject line that read: “Important Notice: Termination of Bank Operations and Account Closure” Onyx wrote, “We are writing to inform you of our decision to discontinue our services and initiate the closure of all associated accounts starting today.”
Co-founder and CEO Victor Santos confirmed to TechCrunch that the company was “moving away from the B2C model” but said that it was changing its business model, not shutting down.
He said Onyx will be shifting to a “B2B white-label platform-as-a-service model for community banks, regional banks, and credit unions” that want to launch digital apps built for young affluent consumers.
Less than a year ago in May, the startup announced raised $4.1 million from a clutch of investors, including Village Global, Y Combinator, Global Founders Capital, One Way Ventures, 186 Ventures and Olive Tree Capital.