Jenius Bank staff announce the bank’s closure

Closure of Genius Bank Reported

Genius Bank, the digital banking branch of Sumitomo Mitsui Banking Corporation, appears to be shutting down, based on information from several former employees.

So far, there hasn’t been any official statement from Genus, and representatives from SMBC have stayed silent. However, multiple employees have shared their experiences. Recently, one former employee updated their LinkedIn status, indicating they were “now available for work,” while others expressed their disappointment regarding the unsettling news received.

Additionally, the Genus X account was removed, along with all posts from its LinkedIn page, which adds to the speculation about the bank’s future.

Two former employees confirmed layoffs, revealing that during a virtual all-hands meeting on Thursday, Takeshi Okamoto, chairman and CEO of SMBC Manubank (the legal entity for Genius), stated that Genius would be closing down.

In a brief meeting lasting about ten minutes, Okamoto, accompanied by at least one other representative, informed employees about the process. Those who were let go would receive an email in their personal accounts, while those on the transition team would be contacted via their work emails.

One employee, who wished to remain anonymous, mentioned that they were actually meeting with their team to discuss next steps when they were abruptly fired and locked out of their work programs. Another employee reported losing access to their work system just two minutes after the meeting ended.

According to a former staff member, Mr. Okamoto cited “market performance” as a significant reason behind the closure, explaining that the digital bank had not yet turned a profit and wouldn’t meet the profitability goals set by its parent company.

When asked about the company’s operations, one employee expressed concerns, stating that while many were dedicated and producing great work, the overall sentiment was one of underachievement—”more than promised, less than expected.” They admitted that things never completely aligned as hoped.

Another employee articulated their expectation for the all-hands meeting, implying it would be a discussion about making necessary changes, not an announcement of a failure to reach their goals.

Speaking to Banking Dive, a relatively new employee felt deceived, suggesting that they had been misled when considering the move to Genius. They mentioned being promised significant growth in workforce and involvement in exciting projects backed by a major global bank, only to find themselves laid off just a few months later.

It’s difficult to comprehend a rapid shift from scaling the workforce to a complete reversal, especially considering the bank’s established position compared to smaller startups.

In response to inquiries, an external customer service representative for Genius stated that the bank intends to continue operations and expressed confusion regarding employee remarks indicating otherwise.