Digital bank Onyx Private shuts down retail services, shifts focus to B2B

  • Onyx Private, a Miami-based digital bank supported by Y Combinator, is shuttering its banking operations and shifting focus to a B2B model.
  • Closure notices have been issued by Onyx Private, as the company undergoes a strategic transformation, marked as “inactive” on Y Combinator’s website.
  • CEO Victor Santos confirms Onyx Private’s pivot away from a B2C model, opting for a B2B white-label platform to cater to community banks, regional banks, and credit unions.

OUR TAKE
Onyx Private’s transition from a digital banking service to a B2B model marks a strategic shift. Transitioning from a business-to-consumer (B2C) model to a business-to-business (B2B) model offers several benefits, including scalability, as B2B solutions can be tailored and sold to a broader range of organisations. Moreover, B2B models often foster stronger, long-term relationships with clients, as businesses prioritise reliability, efficiency, and cost-effectiveness in their partnerships, potentially leading to more stable revenue streams and sustainable growth opportunities.
–Sylvia Shen, BTW Reporter

Onyx Private, a Miami-based digital bank supported by Y Combinator, which provides investment and banking services to high-earning Millennials and Gen Zers, is shutting down its bank operations.

Onyx Private sends closure notices

American venture capital firm Y Combinator supports startups with resources and seed money. Now, Onyx Private is marked as “inactive” on Y Combinator’s website.

The company sent out emails on March 13 with the subject line “Important Notice: Termination of Bank Operations and Account Closure,” according to a user of Onyx Private.

In the email, Onyx stated: “We are writing to inform you of our decision to discontinue our services and initiate the closure of all associated accounts starting today.”

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Onyx Private transforms strategy

Victor Santos, the CEO and co-founder, stated that the company was “moving away from the business-to-customer (B2C) model,” although he clarified that this meant a change in business strategy rather than a closure.

Santos adds that Onyx will change to a “B2B white-label platform-as-a-service model for community banks, regional banks, and credit unions” in order to support their plans to introduce digital apps targeted at affluent young people.

Santos asserted that Onyx had been working with certain partners on the concept for the previous year and had made progress.

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Onyx Private aims to emulate UBS

In May of last year, the business declared that it had secured $4.1 million in venture capital from investors including Y Combinator and Village Global.

To become the “next generation Union Bank of Switzerland,” Onyx Private claimed to have grown 30% in just a single month and was handling more than $4 million in transaction payments each month last year.

Additionally, it stated that its total payment volume was around $5 million.

Santos today denied providing the number of Onyx’s banking clients.

Sylvia-Shen

Sylvia Shen

Sylvia Shen, an intern reporter at BTW media dedicated in Fintech and Blockchain. She graduated from University of California, Davis. Send tips to s.shen@btw.media.

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