Loyalty App Backed by Lloyds and Barclays Shuts Down, Resulting in 46 Job Losses
A loyalty app backed by Lloyds and Barclays Bank, known as Bink, has ceased operations, leading to 46 job losses. Established in 2015, Bink revolutionized the loyalty program by connecting existing payment cards to loyalty schemes, eliminating the need for separate reward cards. The app catered to prominent clients such as Iceland supermarkets, Harvey Nichols department stores, and Wasabi Japanese restaurants. Despite raising £9 million in funding last year, the company faced substantial financial losses, ultimately failing to secure additional investment. Consequently, Bink has appointed liquidators to manage the closure and potential creditor returns.
Key Takeaways
- Lloyalty app Bink, supported by Lloyds and Barclays, has closed, resulting in 46 job losses.
- Founded in 2015, Bink linked payment cards to loyalty schemes, eliminating the need for separate rewards cards.
- Despite a £9 million funding injection last year, Bink faced significant financial losses, leading to its closure.
- Joint liquidators have been appointed to wind down Bink, aiming to maximize returns for creditors.
Analysis
The closure of Bink emphasizes the challenges within the fintech loyalty sector, highlighting the impact of unsustainable financial losses and failed investment rounds. This event may disrupt services for clients, potentially impacting investor confidence in similar startups and prompting banks to reassess their support for fintech ventures. The failure could further lead to a shift towards more durable and cost-effective loyalty solutions, potentially influencing the consolidation of smaller market players by larger financial institutions.
Did You Know?
- Joint Liquidators: These professionals are appointed in the event of a company's insolvency to oversee the liquidation process, aiming to maximize returns for creditors and ensure an orderly dissolution.
- Loyalty App: A digital platform enabling consumers to earn and redeem rewards for purchases at participating retailers.
- Financial Failure from Inception: This term refers to a business that has consistently failed to achieve financial viability from its establishment.