Six months after acquisition, SoFi is shutting down Zenbanx

Online lending company SoFi is closing down Zenbanx, the online banking provider it bought earlier this year. In an email sent to Zenbanx customers, the company announced that it will close all accounts at the end of next month.

Back in February, SoFi took its first step toward adding checking and credit cards to its suite of financial services through its acquisition of Zenbanx. Then last month, the company applied for a bank charter with the hopes of using Zenbanx’s tech stack and personnel for the introduction of its own SoFi-branded online bank.

However, while the banking charter application is pending, it didn’t make sense for SoFi to continue offering services under its current structure. According to a SoFi spokesperson, Zenbanx had a partnership with Wilmington Savings Fund Society (WSFS) that expired this month and, rather than renew it or find another partner, the company decided to just close existing accounts.

Below is a partial copy of the email sent to Zenbanx users, which also included instructions for how to remove funds before the August 31 deadline.

When Zenbanx was acquired by SoFi in February, we promised to keep our customers and applicants apprised of any changes to the Zenbanx account. In conjunction with our partner Wilmington Savings Fund Society (WSFS), we’ve made a decision to close accounts, effective August 31, 2017 at 12AM ET (“Account Close Date”).

Here at SoFi, we are working to build out an expanded line of revolutionary consumer financial products including a new account to be launched in the near future.

We apologize for any inconvenience this may cause you. You have our assurance there will be no changes in the Terms and Conditions of your Zenbanx Account between now and the Account Close Date. As of July 1st, our interest rates will be changed to 0% for all currencies in accordance to the Terms and Conditions of your Zenbanx Account. If earning interest on the funds in your Zenbanx Account is important to you, we encourage you to close your account before this date.