Onyx Private, a digital bank, is making a strategic shift in its Business model by moving away from the business-to-consumer (B2C) model. The CEO, Victor Santos, clarified to TechCrunch that the company is not shutting down despite an email sent to customers about discontinuing services and closing associated accounts.
The new business model for Onyx Private will focus on a business-to-business (B2B) platform-as-a-service for financial institutions targeting young affluent consumers. This decision was not influenced by regulatory challenges but rather a strategic move to leverage existing FI partnerships and scale more efficiently.
Last year, Onyx Private raised $4.1 million in funding to provide private banking and investment services tailored to affluent millennials and Gen Zers. They partnered with Piermont Bank for banking services, Helium Advisors and the Bank of New York Mellon’s Pershing for investment services, and offered a lifestyle concierge service through a digital personal assistant.
In the digital banking space, Griffin, a British banking-as-a-service platform, recently received regulatory approval to launch as a fully operational bank. Additionally, i2c and The Bank of Missouri teamed up to assist FinTechs in offering digital banking products such as checking and savings accounts, loans, credit cards, rewards programs, and virtual cards.
This shift in business model for Onyx Private reflects the evolving landscape of digital banking and the continued innovation in the financial services industry. The decision to focus on B2B offerings underscores the importance of adapting to market trends and maximizing technological capabilities for sustainable growth and success.
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