How thousands of Americans got caught in fintech’s false promise and lost access to bank accounts
Publishing timestamp: 2024-07-03 07:22:15
Summary
Fintech customers who trusted in the safety of their accounts held at real banks through partnerships with fintech companies like Synapse have been left in financial limbo, with millions of dollars frozen and little hope of full recovery. The collapse of Synapse has revealed the risks associated with the banking-as-a-service model, leaving many customers locked out of their accounts and questioning the safety of their funds. Regulators are now scrutinizing banks that provide services to fintech companies, and the implications of this disaster may have far-reaching consequences for the industry.
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Keywords: business, venture capital, breaking news: investing, investment strategy, general motors co, jpmorgan chase & co, personal finance, fedex corp, securities fraud, banks, fintech, paypal holdings inc, lendingclub corp, breaking news: markets, business news, technology, walt disney co, block inc,
Source: https://www.cnbc.com/2024/07/02/synapse-fintech-fdic-false-promise.html