According to reports Asto Digital, a bookkeeping and financing app which was launched in 2018 will be closing down after parent Santander announced funding cuts. It is speculated that the app failed to achieve sufficient growth.
“Whilst the growth and momentum of Asto has been strong, we believe there are more effective ways in which the bank’s resources can be deployed to benefit our small business customers.
“Santander will also use Asto technology to improve the SME experience at scale. In the meantime, we are engaging with employees, customers and stakeholders to ensure an orderly wind down.”
– Bank spokesperson
The news about the funding cut was delivered to Asto’s 65 employees over a video call with CEO Nicolette Maury last week. Though Asto Digital staff will begin losing their jobs next month, it has been stated that Santander will be helping relocate many of the affected staff members.
What about eBay?
Asto and eBay joined forces in 2019 to offer cash flow loans to assist the 200,000 businesses trading on eBay but it looks like the marketplace’s customer base didn’t bring Asto the success needed for their own survival. The report suggests that Santander is working with eBay to ensure their program is still supported.