Miami-based Onyx Personal, a Y Combinator-backed digital financial institution that supplied banking and funding companies for high-earning Millennials and Gen Zers, is terminating its financial institution operations.

In a March 13 e mail to a buyer seen by For Millionaires, with a topic line that learn: “Vital Discover: Termination of Financial institution Operations and Account Closure” Onyx wrote, “We’re writing to tell you of our choice to discontinue our companies and provoke the closure of all related accounts beginning right now.”

Co-founder and CEO Victor Santos confirmed to For Millionaires that the corporate was “shifting away from the B2C mannequin” however mentioned that it was altering its enterprise mannequin, not shutting down.

Y Combinator has listed the corporate as “inactive” on its website, one thing Santos couldn’t clarify. (Replace: The textual content has since been up to date post-publication).

He mentioned Onyx will probably be shifting to a “B2B white-label platform-as-a-service mannequin for group banks, regional banks, and credit score unions” that need to launch digital apps constructed for younger prosperous shoppers. Santos claimed that Onyx had been exploring the concept over the previous 12 months and had made developments with some companions.

Lower than a 12 months in the past in Could, the startup introduced that it had raised $4.1 million in enterprise funding from traders similar to Village World, Y Combinator, World Founders Capital, One Means Ventures, 186 Ventures and Olive Tree Capital. At the moment, the corporate mentioned that since its launch practically a 12 months prior, Onyx Personal – which mentioned it needed to be the “subsequent era UBS” – had grown 30% month-over-month and was processing over $4 million in transaction fee worth per 30 days. It additionally claimed to be nearing $5 million in TPV (complete fee quantity).

Santos right now declined to reveal what number of banking clients Onyx had. Though a supply instructed For Millionaires that regulatory points could have performed a component on this choice, Santos dismissed that, telling us that no regulatory points prompted the startup to close down its direct-to-consumer banking operations. 

He added: “It was purely a strategic choice that allowed us to leverage the bottom of present FIs [financial institutions] and use the expertise now we have constructed to scale in a extra capital-efficient method.”

On the time of its fundraise, the corporate had named Piermont Financial institution as its banking associate. Immediately on its website, Onyx says that “banking companies [are] supplied by i3 Financial institution.” Santos instructed For Millionaires that Onyx “began with Piermont however transitioned final 12 months to i3.”

Piermont declined to remark. For Millionaires has reached out to i3 for remark.

Within the e mail, banking clients have been instructed that the shut-down will happen on April 14 however that “cessation of our rewards program” was “efficient instantly.”

Are you a fintech worker or insider with perception to share? Contact Mary Ann Azevedo by way of e mail at [email protected] or by means of encrypted app Sign at 408.204.3036.

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