US fintech Remitly to bring down its digital banking app Passbook

US fintech Remitly has decided to wind down its digital banking app Passbook, with all services set to end on 1 May 2023. This decision was announced by co-founder and CEO Matt Oppenheimer in an earnings call last week, citing strategic evolution and the company’s need to focus on other products and services as reasons for the closure.

Passbook gained customer traction but ultimately fell outside the company’s core customer segment. As a result, Remitly will be redeploying its resources to higher returning investments, targeted at its core remittance customer. The decision to wind down Passbook was made to focus on developing solutions directly relevant to remittance needs.

Starting 23 March, Passbook will no longer accept deposits, except for MoneyBoost loan customers. The Passbook debit card will be disabled from 20 April, and on 1 May, all accounts will be closed, and any remaining money will be mailed back to customers.

Remitly’s decision to wind down Passbook reflects the ever-evolving nature of fintech, where companies are constantly adapting to new technologies and customer needs. As such, fintech needs to prioritize solutions that are relevant to their core customer segment.

The wind-down of Passbook could be seen as a positive move for Remitly, as it allows the company to focus on developing innovative solutions that are more directly relevant to their customers’ needs. This could result in a better overall experience for Remitly’s core customer base while also improving the company’s bottom line in the long run.

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