DALLAS–A fintech that was launched to offer a “conservative banking alternative” said it is shutting down.
GloriFI, which launched in September and which offered customers checking and savings accounts along with credit cards, said it was designed for people who see Wall Street as too liberal and who want a bank that shared their values.
In a statement on its website, the company said, “Recently, With Purpose, Inc. d/b/a GloriFi, has experienced a series of financial challenges related to startup mistakes, reputation attacks, the declining economy, and multiple negative media stories. As a result of developments late last week, the Board of Directors and leadership of GloriFi have come to the heartbreaking conclusion that we need to begin winding down the company’s operations.
“We couldn’t be more thankful for our employees’ tireless efforts to bring this amazing product to market and our members and clients’ early trust, nor could we be more disappointed in the ultimate outcome,” the statement continued. “Effective immediately, we have begun the process of helping our customers resolve their accounts.”
Employees Cite CEO’s ‘Volatile Temper’
In an email to employees reviewed by the Wall Street Journal, Cathy Landtroop, the company’s chief marketing and communications officer, wrote that the “financial challenges related to startup mistakes, the failing economy, reputational attacks, and multiple negative stories took their toll.”
But there were other issues as well, according to the Journal, which noted the company missed launch dates and that some employees has alleged founder Toby Neugebauer had a volatile temper and drank on the job. Moreover, those employees also said the company’s unusual workspace—Neugebauer’s home—added distractions.
Mr. Neugebauer stepped down as CEO following the article’s publication and became the company’s executive chairman.
According to the Journal, the company raised about $50 million from an A-list group of investors last year.
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