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It has recently been announced that Daylight, a US-based neobank that exclusively caters to the LGBTQ+ community, will be closing down, with its last day of operation expected to be June 30. However, the bank has insisted that the reason for its closure has nothing to do with the banking crisis that has been felt around the globe, per FinTech Futures.
Daylight reportedly stated that they have not been able to pin down a business model that would allow them to offer banking services to the LGBTQ+ community, adding that “banking is a business that works well at scale, and as a small company we cannot identify a path toward profitability.”
However, Daylight’s looming closure comes after NY Magazine published a feature article on the bank, suggesting that it has taken part in discriminatory behavior, and that the CEO, Rob Curtis, had lied about the company’s data and finances, per the report.
Jen Wieczner, a features writer for NY Magazine, tweeted: “A few months ago I heard about a ‘mission-driven’ fintech startup called Daylight with a cult-like leader accused of discrimination and fraud. After talking to 15 employees, the story turned out to be so much stranger.”
According to the feature, there were three former employees who had filed lawsuits, suggesting that the company had been guilty of age and wage discrimination, retaliation against whistleblowers, and fraud.
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