Moven to shut down consumer banking service

Moven , one of the first challenger banks that went on to raise ~$47 million, is shutting down its consumer banking product by April 30, as it wasn’t able to secure the needed funding due to the  Coronovirus outbreak. The company will shift its resources to its enterprise software businesses, which provides traditional banks with a mobile-banking technology platform to reduce rates, drive new revenue streams, and lower customer acquisition costs.

Founded in 2011, the NY-based company offers mobile-only, low-fee banking services and some of its backers include TD, Anthemis, Standard Bank, and Route 66 Ventures. The company employs 50 people according to LinkedIn, and it experienced a 17% reduction over the past six months.

“While our Enterprise business continues to see strong demand, marked by our recent multi-year deal announced with STC Pay based in the Kingdom of Saudi Arabia, the impact of coronavirus on our long-term committed funding pipeline has been impaired, unfortunately. Our plans for the spin-off of the direct-to-consumer business have had to be shelved as a result. It has become patently clear we need to focus our energies and our resources on the segment of our business where we can reach the most consumers moving forward, and that is our distributed smart banking and financial wellness capabilities.” – Founder and chairman of Moven, Brett King.