US digital banking startup Onyx Private is closing customer accounts as it shifts to a B2B business model.
Miami-based Onyx Private, which offered banking and investment services targeting high-earning millennials and Gen Z, had positioned itself as a “next-generation UBS.”
In a March 13 email to customers, the company announced, “Important Notice: Termination of Bank Operations and Account Closure,” stating, “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 Onyx is transitioning away from the B2C model, clarifying that the company is not shutting down but rather evolving its business approach.
Onyx will now focus on a “B2B white-label platform-as-a-service model for community banks, regional banks, and credit unions” aiming to launch digital apps tailored for young affluent consumers.
Just under a year ago, in May, the startup raised $4.1 million from a diverse group of investors, including Village Global, Y Combinator, Global Founders Capital, One Way Ventures, 186 Ventures, and Olive Tree Capital.