– Yolt, the ING-backed open banking platform, is set to close completely.
– The decision comes as ING states that it is not feasible to achieve its ambitions with Yolt in the rapidly changing market.
– Yolt’s B2B operations will be phased out by April, affecting its clients and employees.
– Yolt had previously shut down its consumer app to focus on B2B operations.
– ING believes that Yolt will not achieve the preferred scale in the market within a reasonable time frame.
Yolt, the open banking platform backed by ING, is facing closure. This decision comes as ING realizes that it is not feasible to achieve its ambitions with Yolt in the rapidly changing market. Yolt had previously shut down its consumer-facing smart money app to focus on its business-to-business (B2B) operations. However, ING now believes that Yolt will not be able to achieve the preferred scale in the market within a reasonable time frame. As a result, Yolt’s B2B operations will be phased out by April, impacting its clients and employees.
The Rise and Fall of Yolt
Yolt was launched in 2017 as a consumer-facing smart money app, allowing users to view their bank accounts, credit cards, and other financial information in one place. The app gained popularity for its user-friendly interface and ability to provide insights into spending habits. However, in 2019, Yolt made the decision to shut down its consumer app and shift its focus to B2B operations.
The Shift to B2B Operations
Yolt’s decision to pivot towards B2B operations was driven by the belief that there was a greater opportunity to collaborate with other financial institutions and offer open banking solutions. By providing access to its technology and expertise, Yolt aimed to help banks and other financial service providers enhance their digital offerings and improve customer experience. This shift allowed Yolt to tap into a larger market and potentially achieve greater scale.
Challenges in the Rapidly Changing Market
Despite its efforts to transition to B2B operations, Yolt faced challenges in the rapidly changing market. The open banking landscape has become increasingly competitive, with numerous players vying for market share. Additionally, regulatory changes and evolving customer expectations have further complicated the market dynamics. ING, as the majority shareholder of Yolt, has recognized these challenges and concluded that it is not feasible to achieve the desired scale and success with Yolt in the current market conditions.
The Impact on Clients and Employees
The closure of Yolt’s B2B operations will have a significant impact on its clients and employees. Yolt’s clients, which include banks and financial service providers, will need to find alternative solutions to meet their open banking needs. This may involve partnering with other fintech companies or developing their own in-house capabilities. Yolt’s employees, numbering 48, will also be affected by the closure. ING has stated that it will support the affected employees in finding new opportunities within the company or elsewhere.
Lessons Learned from Yolt’s Journey
Yolt’s journey provides valuable lessons for the fintech industry. It highlights the challenges of operating in a rapidly changing market and the importance of continuously adapting to meet evolving customer needs. It also emphasizes the need for a clear and viable business model that can withstand market dynamics. While Yolt’s closure may be seen as a setback, it serves as a reminder that innovation and experimentation are essential in the fintech space.
Yolt’s closure marks the end of its journey as an open banking platform. ING’s decision to shut down Yolt’s B2B operations reflects the challenges of achieving scale and success in the rapidly changing market. The closure will impact Yolt’s clients and employees, who will need to find alternative solutions and opportunities. However, Yolt’s journey provides valuable lessons for the fintech industry, reminding us of the importance of adaptability and a viable business model. As the fintech landscape continues to evolve, it is crucial for companies to stay agile and innovative to thrive in this dynamic industry.