Banking as a service

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.