Azlo operated as an American technology neobank company that served small businesses with financial products delivered through their website and mobile application. The company declared its closure in January 2021 followed by the closure of all accounts by March 2021. The digital neobank Azlo dedicated its services to providing no-cost banking solutions for freelancers and small business owners as well as entrepreneurs. The neobank stopped its operations in 2021 but its crucial influence on digital banking will be remembered. A detailed description of Azlo includes all its features together with benefits and options for alternatives as well as factors that led to its closure.  

History

The co-founders of Azlo established the company in early 2017 when Brian Hamilton teamed up with Cameron Peake. The BBVA New Digital Businesses division developed Azlo as a stand-alone financial technology startup under its funding system. The company operated as a standalone entity though BBVA owned the majority of stock through its banking license from BBVA USA while sharing payment systems.

The company used a brief testing period with select clients for a few months before publicly releasing the product in February 2018. On January 7, 2021, Azlo declared its shutdown followed by its complete account termination during March 2021.

Overview of Azlo Neobank

Azlo created a modern banking platform for people to discard traditional financial institutions through costless services straightforward digital banking functionality and business-oriented financial management features.  

Features and services

They include the following:

Free business checking account

• No monthly maintenance fees.  
• No overdraft fees or minimum balance requirements.  
• Online-only banking with no physical branches.  

Payment & invoicing tools

The platform enables users to perform ACH transfer both as sender and receiver.  

Users can make invoices within the app interface to directly transmit them to their clients.  Integrations with Stripe, PayPal, and Square for payment processing  

Mobile banking & automation

• Full-featured mobile app for iOS and Android.  
• Azlo Envelope permits automated savings through its dedicated tool.  
• Real-time transaction notifications.  

Business-friendly features

• API integrations with business tools like QuickBooks.  
• Users can make instant peer-to-peer payments through the application.  
• No ATM fees at Allpoint ATMs.

Why did Azlo shut down 

The company Azlo operated through its relationship with BBVA USA. BBVA announced its acquisition by PNC Bank in late 2020 resulting in Azlo’s closure because of the corporation’s restructuring plans. Azlo ceased operations due to changes in the business strategy of its new parent company despite widespread popularity.  

Best alternatives to Azlo

Numerous modern banks now provide their services to match the features offered by Azlo which used to serve small businesses along with freelancers:

Novo Bank

The banking service provides unlimited invoicing as well as free ACH transfers without additional fees. Integrations with Stripe, QuickBooks, and Shopify.  

Mercury

The bank provides tech startup solutions by offering FDIC-insured business banking with no costs for its clients. Azlo provided its users unlimited free domestic and international wire transfers along with no monthly costs or charges.  

C. Lili 

The neobank provides freelancers with specialized tax-saving tools for their financial needs.  

No monthly fees, automatic savings features  

D. Bluevine  

Mercury offers its Business checking account which delivers 2.0% APY interest on amounts kept under $250,000.  Free ACH transfers and bill pay features  

Lessons from Azlo’s rise and fall

What it did well:

• The business banking service without any fees made the platform attractive for prospective entrepreneurs as well as freelancers. 
• Easy digital onboarding with useful business banking tools.  
• The service integrates well with payment processing solutions along with accounting software systems.  

Challenges it faced:

• Dependence on BBVA restricted the bank’s capacity to become truly independent in the long run.  
• The bank experienced problems generating revenue within its free banking environment.  Competition from well-funded neobanks.  

Final thoughts

When Azlo discontinued operations it created a market space which many neobank platforms have successfully developed to meet small business digital banking needs. The modern business banking needs of entrepreneurs will find suitable solutions through banking platforms like Novo Mercury and Bluevine.  

You may also find these articles helpful

Start using Currencyfair Neobank – full guide

Guide on buying Avalanche

Best way to transfer money from Europe to the Philippines