Fintech Business Weekly

Fintech Business Weekly provides in-depth analysis on trends and developments within the fintech, banking, and regtech sectors, focusing on regulatory changes, legal challenges, market dynamics, technological innovations, and financial institutions' strategic responses to the evolving landscape of digital finance.

Regulatory Changes and Compliance Banking and Fintech Partnerships Legal Disputes in Fintech Financial Technology Innovations Market Trends and Funding in Fintech Consumer Protection and Financial Services Digital Banking and Payments Credit and Lending Practices Artificial Intelligence in Financial Services Data Privacy and Security

The hottest Substack posts of Fintech Business Weekly

And their main takeaways

Varo Struggles On As Founder Colin Walsh Steps Down As CEO

52 implied HN points • 16 Feb 25
💰 Finance Fintech Banking AI Investments Regulations
  1. Varo Bank is facing challenges as its founder and CEO Colin Walsh steps down. New CEO Gavin Michael has a tough job ahead with the company still not profitable.
  2. Despite some improvements in revenue and customer growth, Varo's net losses remain significant, with $65 million lost last year. It needs to boost its deposits and customer engagement.
  3. The financial regulatory landscape is changing with new appointments, including Jonathan McKernan resigning from the FDIC and being nominated to lead the CFPB. This could impact how financial services are managed going forward.

Debanking's Dueling Narratives

89 implied HN points • 09 Feb 25
💰 Finance Banking Cryptocurrency Regulation Policy Investment
  1. Debanking is becoming a major topic, especially around the access of crypto companies to traditional banking. This issue has been fueled by public statements from influential figures like Marc Andreessen.
  2. There are claims of political bias in banking, particularly against conservative individuals and businesses. Some people argue that banks are closing accounts for political or ideological reasons, though banks deny this.
  3. Both Republicans and Democrats recognize debanking as a significant problem, but they have different views on its causes and solutions. Democrats are pushing for protections against unfair account closures, while Republicans want legislation to ensure fair access to banking.

Middleware Platform Solid To Wind Down, Lewis & Clark To Exit BaaS

66 implied HN points • 02 Feb 25
💼 Business Finance Investment Banking Regulation Legal issues
  1. Evolve Bank & Trust has faced serious legal issues, including accusations of illegal discrimination and failing to meet fiduciary responsibilities. This has raised concerns about their trustworthiness.
  2. The middleware platform Solid is shutting down, and its bank partner, Lewis & Clark, is also exiting its banking-as-a-service business. This indicates a tough environment for fintech companies.
  3. Wise has reached a settlement with the Consumer Financial Protection Bureau for advertising inaccuracies and failing to disclose fees properly. This highlights ongoing scrutiny in the fintech sector regarding consumer protection.

CBW Accuses FDIC Of Racial, Gender Discrimination; Trade Groups Support Bank’s Seventh Amendment Claim

89 implied HN points • 26 Jan 25
💰 Finance Banking Investment Regulation Economics Legal issues
  1. CBW is accusing the FDIC of racial and gender discrimination in their handling of a significant penalty against the bank. They argue that their leadership has faced bias because of their backgrounds.
  2. A grand jury is investigating the situation surrounding Synapse Financial Technologies, and former employees are being subpoenaed for documents related to potential misconduct.
  3. Patriot Bank is under scrutiny from regulators and has been designated as 'troubled', which means it has to make major changes to its operations and compliance practices.

How One Synapse/Evolve Victim Got His Money Back

89 implied HN points • 12 Jan 25
💰 Finance Banking Investments Regulation Fintech Consumer Rights
  1. Some people affected by the Synapse bankruptcy have struggled to get their money back, leaving many feeling hopeless. The trustee in charge is working on figuring out how to reconcile the missing funds.
  2. One man was able to get his money back by filing a small claims case against Evolve Bank, showcasing that taking legal action can sometimes help consumers regain their lost funds.
  3. In contrast, his daughter faced challenges in court with her similar case, highlighting how results can vary even with similar circumstances. This shows that legal situations can be unpredictable.
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CBW Fights FDIC's $20.5 Million Penalty That Could "Imperil" Its Existence

89 implied HN points • 05 Jan 25
💰 Finance Banking Regulation Investment Fintech Risk management
  1. CBW is facing a huge $20.5 million fine from the FDIC, which could put its future at risk. This penalty is due to failures in its anti-money laundering practices.
  2. A small Kansas bank, CBW, has made a lot of money from international services but hasn't fixed issues raised by regulators in past reviews. They were supposed to improve but didn't make significant changes.
  3. The FDIC argues that the situation with CBW highlights serious compliance problems in the banking sector. They are trying to enforce rules to prevent money laundering, especially in high-risk areas.

Fed Stonewalls Synapse FOIA Request

44 implied HN points • 19 Jan 25
💰 Finance Banking Regulation Fintech Investments
  1. The Cash App recently settled legal issues, which included fines for not properly handling anti-money laundering rules. They also agreed to improve their security and support for users.
  2. The Consumer Financial Protection Bureau released a report on 'buy now, pay later' services, revealing that many loans are small but often lead users to take out multiple loans at once.
  3. There are ongoing concerns about transparency from banking regulators, especially regarding their responses to Freedom of Information Act requests, indicating a gap between what they promise and what they deliver.

Synapse Investor Marc Andreessen Says CFPB "Terrorizes" Fintech, Crypto To Protect Big Banks

156 implied HN points • 01 Dec 24
💰 Finance Fintech Regulation Investments Banking Consumer Protection
  1. Marc Andreessen claims that the Consumer Financial Protection Bureau (CFPB) is making it hard for fintech and crypto companies to succeed because it wants to protect big banks. He believes the CFPB causes banks to refuse services to risky customers.
  2. Andreessen argues that independent government agencies like the CFPB aren't accountable to the public and can act without checks. He feels this restricts innovation in financial services.
  3. Despite claims of 'debanking,' major companies are still engaging in crypto activities. The claims about being pushed out due to regulatory pressures may not reflect the whole truth about the market's adaptability.

FTC Alleges Dave Deceived Users On Tips, Instant Fees, Advance Amounts

193 implied HN points • 17 Nov 24
💰 Finance Financial Regulations Banking Fintech
  1. The FTC has accused the fintech app Dave of misleading users about cash advances, fees, and subscription charges. They claimed many people were promised higher amounts than they could actually get and were not clearly informed about fees.
  2. The number of unbanked households in the U.S. has dropped to 4.2%, but there are still major differences across racial and ethnic groups. Black and Hispanic households remain much more likely to be unbanked than White households.
  3. During the Synapse bankruptcy, issues arose about how funds were managed and returned to users. A lot of users may face significant losses, and there’s a push for more transparency and accountability from banks involved.

"Anonymous" Crypto Debit Card Startup Sues BaaS Platform, Ex-Evolve Partner Solid

66 implied HN points • 15 Dec 24
💰 Finance Banking Investing Fintech Fraud Capital
  1. Fraud and scams are becoming bigger issues for businesses compared to individuals. Companies need better tools to protect themselves from these threats.
  2. Many fintech companies are raising significant funding, which shows growth in the industry. Some are also getting ready for potential IPOs in the coming years.
  3. There's a legal battle between a crypto debit card company and its banking partner. It highlights the risks and challenges in the fintech sector, especially in compliance and service delivery.

Regulators Should Conduct "Material Loss Review" Of Synapse Disaster

52 implied HN points • 08 Dec 24
💰 Finance Banking Investments Regulation Fintech Risk management
  1. Regulators should look into the Synapse disaster to understand what went wrong. This could help prevent similar issues in the future.
  2. There is a significant amount of lost funds that still needs to be clarified, impacting many users. Authorities need to take responsibility and provide transparency.
  3. The emotional toll on the people affected is serious, as highlighted by the Synapse trustee's feelings during court. Many end users are suffering and need answers.

What Can We Learn From Banking Policy In Trump’s First Term?

89 implied HN points • 10 Nov 24
💰 Finance Banking Regulation Fintech Investments Economic Policy
  1. Banking regulations during Trump's first term favored a more business-friendly and less restrictive approach, making it easier for financial innovations to flourish.
  2. Several key appointments in his administration were focused on encouraging small-dollar loans and improving access to credit for underprivileged communities.
  3. There are concerns about the transparency and accountability of banks, especially regarding how they handle customer funds during crises like bankruptcies.

News You Need To Know Before Money2020: Goldman & Apple Hit With CFPB Enforcement Actions

104 implied HN points • 27 Oct 24
💰 Finance Banking Regulation Credit Lending Fintech
  1. Goldman Sachs and Apple have to pay nearly $90 million due to issues with how they handled customer complaints about the Apple Card. They didn't follow the rules about resolving billing errors and misleading customers about financing options.
  2. The final open banking rule is now in place, but it faces a legal challenge from big banks who argue it could increase fraud and harm consumer data safety. This rule aims to give consumers more control over their financial data.
  3. SoLo Funds, a peer-to-peer lending service, is facing a lawsuit for allegedly misleading customers about loan costs. The company has been criticized for operating without the necessary licenses and using confusing practices.

CFPB Proposes Rule To Close TILA Overdraft "Loophole"

661 implied HN points • 21 Jan 24
💰 Finance Regulation Banking Investing Fintech Economics
  1. CFPB proposed a rule to close the TILA overdraft loophole, aiming to protect consumers from billions in junk fees.
  2. The proposed rule would require large banks to treat overdrafts like credit products, disclosing APRs and considering actual costs.
  3. Exempting banks under $10 billion in assets from the rule has sparked debate, highlighting the complexity of regulating banking fees.

Arkansas Congressman’s Proposal To “Make Community Banking Great Again”

44 implied HN points • 24 Nov 24
💰 Finance Banking Regulation Payments Fintech Legislation
  1. A Congressman from Arkansas has a plan to help community banks. He wants to improve regulations to make banking easier and more fair for smaller banks.
  2. The CFPB has decided which digital payment apps will be closely monitored. Apps that process a lot of transactions, like Venmo and Cash App, will need to follow new rules to protect consumers.
  3. During a recent hearing, top banking officials talked about the health of the banking system. They mentioned the need for stronger risk management and staying updated with new financial technologies.

VyStar Invested $20M Into “Dysfunctional” Nymbus; “Botched” Transition Led To Consent Order, $1.5M Penalty

59 implied HN points • 03 Nov 24
💼 Business Fintech Investments Banking Legal issues Consumer Protection
  1. VyStar Credit Union faced major issues after investing $20 million in Nymbus due to a failed transition to a new online banking platform.
  2. The Consumer Financial Protection Bureau ordered VyStar to pay a $1.5 million penalty for unfair practices during the transition process, which left customers unable to access their accounts.
  3. Nymbus is currently involved in multiple legal disputes with clients, claiming it failed to deliver promised services and is now reportedly trying to extort money from a former customer.

"Troubled" Axiom Bank Retaliated Against AML Whisteblowers, Ex-Staffers Say

66 implied HN points • 20 Oct 24
💰 Finance Banking Compliance Regulation Fintech Legal
  1. Axiom Bank faced serious allegations of retaliation against former employees who raised concerns about compliance and risk management issues. The complaints suggest that the bank ignored safety regulations and retaliated against those who spoke up.
  2. TomoCredit, facing financial struggles, defaulted on its debts and is being sued for not paying vendors. The company also has legal challenges over misleading practices related to its credit-building products.
  3. Both Axiom Bank and TomoCredit reveal challenges in the fintech sector related to compliance, financial stability, and ethical practices. These cases highlight the risks involved in the rapidly changing financial technology landscape.

Banking-as-a-Service: Wrapped

475 implied HN points • 31 Dec 23
💰 Finance Fintech Compliance
  1. The banking-as-a-service industry faced challenges in 2023, such as issues with compliance and partnerships.
  2. There was increased regulatory scrutiny on BaaS entities, with concerns around misleading claims and high interest rates.
  3. Multiple BaaS-related scandals and legal actions occurred throughout the year, impacting various companies in the industry.

The Smallest Bank in Tennessee Grew Fast With BaaS. Why It May Give The Entire Industry A Hangover.

267 implied HN points • 27 Aug 23
💰 Finance Banking Fintech Regulation Partnerships Deposits
  1. The smallest bank in Tennessee saw significant growth by leveraging BaaS partnerships, but this rapid expansion may raise concerns about the bank's ability to manage increased complexity.
  2. The Herrington family behind Lineage Bank has a history of running banks, facing challenges and controversies in their previous ventures.
  3. Synapse, a key BaaS partner of Lineage Bank, has faced regulatory scrutiny and may be pressuring Lineage to approve more programs, highlighting risks in complex financial partnerships.

Consent Order Double Header Suggests Tough 2024 For Fintech, Banking-as-a-Service

141 implied HN points • 28 Jan 24
💼 Business Fintech Regulation Partnerships
  1. Fintech and media businesses are facing challenges like layoffs and closures, highlighting the importance of independent journalism.
  2. Regulatory changes like the CFPB proposed rules on junk fees and NY BNPL law are impacting the banking and fintech industry.
  3. Recent enforcement actions on Blue Ridge Bank and Choice Bank reveal the regulatory scrutiny on BaaS relationships, emphasizing the need for due diligence and compliance.

Brigit's Good Intentions Aren't A Defense to FTC Allegations

156 implied HN points • 12 Nov 23
💼 Business Fintech Regulation Investment Financial Services
  1. Brigit faced FTC allegations despite good intentions in serving lower-income users
  2. FTC alleged deceptive practices by Brigit, including misleading claims and difficult subscription cancellations
  3. The Federal Reserve proposed lowering the debit interchange cap, expecting cost savings for merchants and potential impacts on fees and ecommerce

Was Fintech's Biggest Lending "Innovation" A Willingness To Serve Riskier Borrowers By Charging Higher Rates?

237 implied HN points • 09 Jul 23
💰 Finance Fintech Lending Venture Capital Banking
  1. Fintech lenders rely heavily on conventional credit scores like FICO and possibly overcharge riskier borrowers.
  2. Fintech's main 'innovation' is serving borrowers banks reject by charging higher interest rates.
  3. Goldman Sachs is looking to offload its Apple partnership, showcasing the shifting landscape of fintech engagements.

Leaked Treasury Prime Docs Show Risks Of BaaS Business: Churn, Concentration, Slowing Growth

89 implied HN points • 03 Mar 24
💰 Finance Fintech Banking Regulations Business Models Risk management
  1. Leaked Treasury Prime documents highlight risks in Banking-as-a-Service business, including issues like churn, concentration, and slowing growth.
  2. Treasury Prime's strategic pivot to focus on selling to banks instead of fintechs resulted in drastic employee layoffs, shedding light on the challenging environment for middleware platforms in fintech.
  3. Fintech companies like Chime and Green Dot facing regulatory actions and penalties underscore the importance of compliance and customer service in the financial industry.

Future of Goldman's "Platform Solutions" Looks Grim

170 implied HN points • 24 Sep 23
💰 Finance Fintech Banking Cryptocurrency Regulation
  1. Eco shut down its banking app and laid off its team as it focuses on new money initiatives with cryptocurrency.
  2. Goldman Sachs is near selling GreenSky, indicating a bleak future for its "Platform Solutions" division.
  3. CFPB warns that lenders using AI must provide specific reasons for adverse actions and initiates rulemaking to remove medical debt from credit reports.

Potential Class Action Argues High APR "Rent-a-Bank" Scheme Violates RICO

96 implied HN points • 11 Feb 24
💰 Finance Banking Legal Regulation Fintech Lending
  1. A potential class action case argues against a "rent-a-bank" scheme for high APR loans, highlighting the importance of understanding financial regulations and usury laws in the lending industry.
  2. The case brings attention to the evolving landscape between fintech companies and traditional banks, showing the complexities and discussions around defining the true lender in partnerships.
  3. The case also underscores the need for transparency and clarity in financial partnerships, as demonstrated by the alleged lack of distinction between a fintech entity and bank in customer-facing materials.

Morgan Stanley-Backed TomoCredit Isn't Paying Its Bills, Faces Mounting Legal Challenges

89 implied HN points • 18 Feb 24
💰 Finance Fintech Credit Legal Challenges Startups Banking
  1. TomoCredit, a startup backed by Morgan Stanley, is facing financial troubles and legal challenges despite its initial success claims.
  2. Mission Lane, a subprime card startup linked to LendUp, has raised $50 million and replaced its CEO in an effort to reposition itself.
  3. A study by the Federal Reserve reveals differences in how financially stable versus fragile households utilize buy now, pay later services, impacting the types and frequency of purchases made.

Blue Ridge "Explores Options" For Capital Raise As It Reduces BaaS, Fintech Exposure

126 implied HN points • 19 Nov 23
💰 Finance Banking Regulation Lending Payments Compliance
  1. Blue Ridge Bank is looking to raise capital and reduce its exposure to banking-as-a-service and fintech.
  2. States like California and Wisconsin are regulating earned wage access, which is positive but adds compliance challenges.
  3. Plaid has launched a subsidiary as a consumer reporting agency, moving towards offering cash flow underwriting services.

Is the Capital One/Discover Deal Good or Bad For “Competition”? Yes.

81 implied HN points • 25 Feb 24
💰 Finance Fintech Regulation Banking Acquisition Legislation
  1. Capital One's acquisition of Discover is a complex deal that has both good and bad elements for competition, creating a potential shake up in the US payments space.
  2. The CFPB is using once-dormant authority to supervise nonbank entities like World Acceptance Corp, focusing on risks to consumers.
  3. Acting Comptroller Hsu suggests creating a federal money transmitter licensing framework to better regulate non-bank companies providing bank-like services, highlighting potential risks in the growing role of non-bank firms in banking areas.

What Happened to the OCC's Chief Fintech Officer?

133 implied HN points • 10 Sep 23
💼 Business Fintech Banking Regulation Investment Startups
  1. The OCC's Chief Fintech Officer mysteriously disappeared from his role, raising questions about his background and qualifications.
  2. CFPB Director highlights Apple and Google's control over mobile payments, calling out potential anti-competitive practices.
  3. FDIC's Q2 Banking Profile shows declining net income, slightly reduced net interest margins, and continued unrealized losses in banks' securities portfolios.

CBW Bank, A BaaS Pioneer, Is Up For Sale: Exclusive

59 implied HN points • 17 Mar 24
💼 Business Fintech Banking Regulation Innovation Sales
  1. CBW Bank, a pioneer in Banking-as-a-Service, is up for sale, showing continued challenges in bank/fintech partnerships.
  2. CBW Bank grew significantly under new ownership, focusing on innovation and providing API access for startups and banks to build digital banking solutions faster.
  3. Regulatory shifts and challenges in innovation may have led to CBW's decision to sell, highlighting the impact of changing regulatory attitudes on banks like CBW.

TabaPay Working On A Deal To Acquire Synapse, Sources Say

59 implied HN points • 10 Mar 24
💼 Business Fintech Venture Capital Startup Regulation
  1. TabaPay is in talks to acquire Synapse, a banking-as-a-service platform, to potentially mitigate damage caused by a past financial incident.
  2. Oxygen, a neobank, is pivoting to focus on 'health solutions' temporarily, suspending its banking services.
  3. Trade groups are suing to block a new CFPB rule that limits credit card late fees, arguing it restricts choices and responsible credit card use.

Maryland Latest State To Issue EWA Guidance

126 implied HN points • 20 Aug 23
💰 Finance Fintech Bankruptcy Regulation
  1. Maryland issued guidance on earned wage access (EWA) products, following in the steps of Nevada and Missouri.
  2. CFPB Director Chopra announced new rulemaking to regulate data brokers and protect consumer data.
  3. Analysis of Dave's Q2 earnings shows discrepancies in metrics like average revenue per user, highlighting the importance of looking beyond official reports.