Blame it on the ‘rona? In a transition announced earlier this week, Moven – which made headlines recently with its partnership with Saudi Arabia’s STC Pay – is moving away from the direct to consumer / neobank model to focus on what founder Brett King summed up as “our distributed smart banking and financial wellness capabilities.”
“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,” King said.
The company specifically noted the impact of the COVID-19 crisis on Moven’s funding pipeline as a leading factor in the decision. The company emphasized that its Enterprise business remains healthy and well-funded.
“The Moven brand now has the opportunity to represent patented financial well-being, available to enterprises of all types,” Head of Moven’s U.S. Strategy Denny Brandt said. “Our patent gives us competitive strength in a rapidly evolving B2B environment. We continue to be involved in ventures in multiple geographies where we power direct-to-consumer banking services.”
Moven announced that it will close customer accounts at the end of April. The company has begun to communicate with accountholders to let them know what to expect as well as to ensure a smooth transition.
Founded in 2011, Moven made its Finovate debut a few years later at FinovateEurope in London, earning a Best of Show award. The New York-based company, among the first to combine smartphone apps, debit cards, and bank accounts as part of a unified strategy for managing personal finances, launched Moven Enterprise in 2016 to license its technology to banks and other financial institutions. Moven Enterprise debuted on the Finovate stage at FinovateEurope in 2017, showing how its engagement platform brings value to customers while producing measurable, positive business outcomes for banks.
Notably, Moven’s partnership with STC Pay is not the company’s first foray into the MENA region. A little over a year ago, Moven announced that it was teaming up with Bahrain-based Almoayad Technologies, which is leveraging the company’s technology to help fulfill the open banking mandate from the country’s central bank.