Banking as a service

Some consumers have been waiting a year and a half to get their money back.

The Nashville community bank is focusing on growing its "digital branches" through fintech partnerships and embedded banking with its latest funding round.

The Virginia-based bank had been an example of what can go wrong when banks partner with fintechs. After being released from an OCC enforcement action, Blue Ridge is now focused on operating as a traditional community bank, said CEO Billy Beale.

The global financial services company is providing BaaS infrastructure to the digital asset branch of investment platform WisdomTree.

The former head of resolutions at the FDIC has high hopes for a bank that's been embroiled in the Synapse disaster.

The banks have invested in gen AI and embedded finance, respectively.

Yotta is pursuing its lawsuit against Evolve, saying the bank misappropriated tens of millions of dollars of customer funds, ran a Ponzi scheme and lied to cover up its malfeasance.

A Northern California judge has ruled that Yotta must specify Synapse's role in alleged fraud, as well as details of the fraud.

MainStreet Bancshares in Fairfax hopes investors will endorse its plan to refocus on basic community banking after shuttering its embedded banking unit. But a prominent shareholder is urging management to sell.

As the banking-as-a-service model has evolved over the last decade amid widespread consent orders and BaaS partnership failures, the number of sponsor banks has dwindled, leaving fintechs to compete for the business of those that remain.

Fintechs that want to acquire bank charters face multiple obstacles, from increased regulatory scrutiny to stiff competition from established banks.

MainStreet Bancshares in Fairfax has closed its banking-as-a-service subsidiary after the unit fell far short of meeting its revenue and deposit targets.

Fund That Flip, a former Synapse customer that says its customers are owed $243,861, won the right to demand answers and documents from Evolve.

The latest lawsuit stemming from Synapse's bankruptcy accuses the banks of risk management failures.

The buy now/pay later company made a deal with Stride Bank to add banking-as-a-service heft as Affirm Card usage soars and Evolve grapples with defections.

Finwise Bancorp believes a new plan to hold more of the fintech loans it originates on its balance sheet will boost profits in 2025.