/retail banking

News and resources on retail banking, consumer finance and reinventing customer experience in finance.
Moven to wind down consumer unit as spin-off funding withdrawn

Moven to wind down consumer unit as spin-off funding withdrawn

Moven is to shut down its direct-to-consumer PFM offering following the withdrawal of multi-year funding as a result of market conditions.

The New York-based company, fronted by fintech pioneer Brett King, says the firm will now concentrate solely on selling it technology to banks.

Says King: “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. 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.”

The direct-to-consumer offering will be wound down and all accounts closed in Q2, 2020, he says.

Comments: (6)

Brett King
Brett King - Moven - New York 25 March, 2020, 20:19Be the first to give this comment the thumbs up 0 likes

If anyone has questions, happy to discuss

+1-646-204-0492, brett@moven.com

BK

A Finextra member
A Finextra member 26 March, 2020, 01:53Be the first to give this comment the thumbs up 0 likes

Ironic the self-proclaimed futurist and fintech disruptor can't make it a month into an economic downturn without shutting the lights.  Eight years in and still needs capital to stay afloat..

Brett King
Brett King - Moven - New York 26 March, 2020, 07:471 like 1 like Yes. For more than 9 years we’ve successfully run a business most thought would die within months of our launch back in 2011 Firstly, we’re still have a thriving enterprise business that is growing and this prioritizes the profitable part of the business. So we’ve pivoted, not filed for chapter 11, and the Enterprise business doesn’t need any capital to stay afloat Secondly, we had a long term funding plan disappear, without that the direct to consumer business spin off was simply no longer viable as it would have seriously impinged on our growth and our push into the US market. The funding reversal was out of our control But thanks for the personal attack and making it anonymously
Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 26 March, 2020, 15:29Be the first to give this comment the thumbs up 0 likes

I too am not a fan of letting personal and country-specific comments be posted anyonymously. Years ago, I appealed that, in the interest of establishing a level playing field, Finextra should stipulate that anonymous comments (A) should not include references to any country at all (hard to implement?) OR (B) should include the commenter's country as well (easier to implement?).

If both options are hard to implement, here's a third option for Finextra's consideration: 

(C) Warn people posting anonymously that, ex post facto, if it's brought to Finextra's attention that the comment makes personal and / or country references, then Finextra reserves the right to "out" the name and country of the commenter.

I'm sure Option C would act as a suitable deterrent against anonymous personal and country comments. 

I'm no techie but, as far as I can see, Option C won't require any website code change and can be implemented by merely adding a short slug of text next to the "Anonymously" radio button in the comment box. 

A Finextra member
A Finextra member 26 March, 2020, 15:46Be the first to give this comment the thumbs up 0 likes

If you ever listen to the fintech podcasts (won't mention which ones) and other media outlets, these fintech leaders are constantly disparaging incumbent banks and legacy software providers all under this premise that fintechs are taking over the world..I would call those attacks more personal than the above comment.  I'm not sure how you can disagree that its ironic that the incumbent banks are still thriving while the fintechs are already struggling to stay afloat in this market environment.  Easier said than done to disrupt..and anynoymous commenting is to protect individual's from public backlash and association with their employer. 

Brett King
Brett King - Moven - New York 26 March, 2020, 18:09Be the first to give this comment the thumbs up 0 likes

I've never said Fintechs are taking over the world. In fact, I built my fintech on working with banks like TD since 2014! Secondly, I've written extensively on fintech and banking partnerships, in fact, Bank 4.0 is based on this very premise. Lastly, I've only maintained that branches will not survive, and that banks reliant on branches won't survive - now more than ever that strategy is playing true. If anything I've supported banks through digitization from the get go, and it's why I started writing in the first place, so I take great exception at your characterization of me being an advocate of fintech destroying banks, as that is patently not the case. 

Trending Stories