Synapse Financial Technologies, a key company in the fintech industry that served as a middleman between fintech startups and licensed banks, filed for bankruptcy in April. A month later banks froze accounts associated with Synapse, citing discrepancies in ledgers kept by Synapse. This has not only impacted consumers but also disrupted fintech startup companies that relied on them for fund transfers. The fintech industry now faces scrutiny over bank partnerships because of poor compliance with money laundering guidelines and other risk management issues. Investors fear that more strict regulation of bank-fintech partnerships following Synapse could disrupt opportunities for new fintech startups. https://www.wsj.com/articles/why-the-synapse-bankruptcy-has-the-fintech-world-on-edge-f83cbe6d
Synapse Bankruptcy Shakes the Fintech World
