Miriam Cross’ Post

Banks in Synapse mess make progress toward releasing deposits of stranded fintech customers KEY POINTS - - Banks involved in the mess caused by the collapse of fintech middleman Synapse have made progress piecing together account information for customers that could result in a release of funds in a matter of weeks, according to a person briefed on the matter. - More than 100,000 customers of fintech apps like Yotta, Juno and Copper have been locked out of their accounts since May. - Evolve Bank initially planned to release $46 million it held from payment processing accounts to give customers partial payments, according to the person familiar. But it now seems something approximating a full reconciliation of customer accounts is possible. https://lnkd.in/gncurYuD

The financial system -- and especially the banking system -- is based on trust. The bankruptcy of Synapse has shaken that trust for fintech customers who can't access their savings (see the excellent story out today by Claire Williams for more) and that distrust can be contagious. Policymakers need to develop a plan to close the gaps between what banks offer and what fintechs advertise, but first they need customers to know that they feel their pain.

Bank-fintech partnerships can provide multiple customer-drawing benefits. And when planned correctly, they can save both customers and financial services organizations from the repercussions of a collapse. Our specialists help fintechs and banks perform due diligence and establish more secure strategies for compliant partnerships. Reach out if you'd like to connect with one of us. Story by CNBC #Fintechs #DigitalBanking #BaaS https://bit.ly/4cyHpUI

In this new fintech world, users need to research and understand how thes new fintech companies really work. Synapse debacle is an example of the ecosystem that can fail in fintech world and how customers can be left stranded when a middle service provider fails. https://lnkd.in/duE3rBeV

Bank-fintech partnerships can provide multiple customer-drawing benefits. And when planned correctly, they can save both customers and financial services organizations from the repercussions of a collapse. Our team helps fintechs and banks perform due diligence and establish more secure strategies for compliant partnerships. Reach out if you'd like to connect with one of us. Story by CNBC #Fintechs #DigitalBanking #BaaS https://bit.ly/4cyHpUI

“Ultimately, a good partnership between a bank and a BaaS client looks like a marriage where both sides are deeply involved.” —Ahon Sarkar, General Manager, Helix by Q2.    Ahon and Steve Cocheo of The Financial Brand break down the dos and don’ts of utilizing #BankingasaService (BaaS) for financial institutions in this recent article. Learn what to look out for when it comes to “fast BaaS,” how to dive into the “fintech Wild West” properly and how to assess potential #BaaS partners. https://lnkd.in/g4vEwPHe

“I think the BaaS market is going to continue to grow while having more of a regulatory spotlight on it than before.” In this article, Chris Tremont, Chief Digital Officer shares his predictions on what lies ahead for Banking-as-a-Service (BaaS). #DigitalBank #BusinessBanking #BaaS #Fintech #EmbeddedFinance

🔔Major news from the U.S. Federal Reserve: Say hello to FedNow! 💸 Aiming to modernize the American payment system, this service enables rapid and continuous fund transfers. Joining the likes of UK, India, Brazil and the EU, FedNow seeks to eliminate cash transfer delays. With 41 banks, including giants like JPMorgan Chase, already on board, we're moving towards a future of instantaneous transactions. Stay tuned as the financial landscape evolves! 🚀 #Finance #FedNow #Innovation https://reut.rs/3Q3OOTB

The recent bankruptcy filing of Synapse Financial Technologies, a significant player in the banking-as-a-service (BaaS) industry, underscores the fragility of fintech partnerships. Synapse's collapse, marked by frozen customer deposits and halted financial services, has highlighted the risks associated with relying heavily on a single financial institution. The Synapse bankruptcy is a critical lesson in financial management. Consumers should consider diversifying their banking relationships to better protect their assets and ensure continuous access to their funds, regardless of individual institutional challenges.#diversifying #economy #finiancialcoaching #financialeducation #bankingnews #finacialsecirity For more info follow the link : https://lnkd.in/eJHkRFJw