Oxygen, a US-based financial technology company, has announced that it will be temporarily suspending its banking services, as it switches gears towards health insurance.
Oxygen said: “We are stepping into a new world with a simple yet powerful mission: to give back control to individuals who are self-employed, their families and their businesses so that they are able to succeed financially while prioritising their own health and the wellbeing of their employees.”
It added: “Oxygen is reimagining the future of financial wellbeing. Our vision is to provide affordable solutions empowering individuals and businesses to achieve financial goals while prioritising health and happiness.
“With the launch of Oxygen Health, we’re taking a bold step towards this vision, offering significant savings on prescription medications and paving the way for comprehensive healthcare solutions.”
Accounts closing
Oxygen, which launched in 2017, has already started to close some of its 750,000 customer accounts, with all expected to be closed by the 29 March. Oxygen Health will be launched later this month.
“We aim to create an ecosystem where financial prosperity and personal wellness go hand in hand,” Oxygen said.
Over the past seven years, Oxygen based its business on offering innovative financial solutions, to a market of business owners, entrepreneurs, freelancers and individuals.
Only a week ago, Oxygen had updated a Q and A article on its site titled How to use Oxygen for your business and personal finances.
In answer to the question: ‘What benefits does Oxygen offer for business and personal accounts?’, Oxygen noted that it “provides a range of benefits for both business and personal accounts, including cashback rewards, virtual cards, early payday access, and our savings goals feature.
“A combined approach ensures that you can enjoy these features and more in both aspects of your financial life.”
But now account holders will be forced to close their accounts as Oxygen shifts gear towards health.
And as people rush to close their accounts, the company has noted that it is currently experiencing delays in response times due to a backlog.
“We apologise for any inconvenience caused and assure you that we’re working hard to get back to you as soon as possible. Thank you for your patience and understanding,” Oxygen said.
Oxygen Health
Meanwhile, Oxygen Health should be launched later this month.
Oxygen said: “Unlike traditional insurance offerings, Oxygen Health will partner with alternative and supplemental health plan providers to offer transparent pricing and flexible coverage options.”
The company said that Oxygen Health would aim to disrupt the intersection of finance and healthcare by offering a direct-to-consumer model that breaks down barriers to access.
David Rafalovsky, CEO at Oxygen, said: “At Oxygen, we’ve always believed in empowering our community to achieve their financial goals. As the financial landscape undergoes rapid changes, we see an opportunity to redefine our role and deliver even greater value to our customers.
“Our commitment to our community is stronger than ever.
“During this transition, we will be focusing our efforts on creating a product line that integrates health with financial solutions.
“We understand the challenges individuals and businesses face when balancing financial stability with personal wellbeing. With Oxygen Health, we’re offering a comprehensive, affordable health plan that puts control back in your hands.“
Oxygen had not replied to a request for comment up to the time of publication.