17 votes

Synapse, backed by a16z, has collapsed

Posted by boxer_dogs_dance
Tags: business, banking, usa, fintech, synapse, a16z, author.mary ann azevedo, source.techcrunch
https://techcrunch.com/2024/05/25/with-a16z-backed-synapses-collapse-baas-fintech-is-a-mess-and-10-million-consumers-could-be-hurt/

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Title
With a16z-backed Synapse's collapse, BaaS fintech is a mess and 10 million consumers could be hurt | TechCrunch
Authors
Mary Ann Azevedo
Published
May 25 2024
Word count
1495 words

1 comment

  1. vord
    Link
    As a "just barely avoided having several month's of pay locked into a fintech account" user, I welcome the added regulations that will hopefully bring the end of these 'too good to be true'...

    As a "just barely avoided having several month's of pay locked into a fintech account" user, I welcome the added regulations that will hopefully bring the end of these 'too good to be true' banking apps.

    As the article says:

    Mikula added. “I’d expect heightened attention to ongoing due diligence around the financial condition of these kinds of middleware vendors, none of which are profitable, and increased focus on business continuity and operational resilience for banks engaged in BaaS operating models.”

    Emphasis mine. These weren't business models. They were pump and dump cash grabs.

    19 votes