Reported 12 months ago
The collapse of fintech firm Synapse is affecting small banks, leaving customers without access to funds and raising concerns about missing millions. Relationships between venture-backed fintechs and FDIC-backed lenders are under scrutiny as regulators urge tighter controls. Synapse's bankruptcy has highlighted risks in partnerships, with the Federal Reserve taking action against the firm's partner banks. This situation underscores challenges in the financial technology sector and the importance of regulatory oversight.
Source: YAHOO