Fintech and Banking-as-a-Service

lon_don

Not directly relevant to UK banking, but has anyone been following the Synapse bankruptcy case in the US ?
Yesterday's NYT https://www.nytimes.com/2024/07/09/business/synapse-bankruptcy-fintech-fdic-insurance.html?unlocked_article_code=1.6E0.uBM7.A49-I4aMDx0k caught my attention. There is also a more detailed description here https://prospect.org/economy/2024-05-23-fintech-fight-frozen-bank-accounts-synapse/ .

I was wondering which fintech in the UK (if any) operates on the same model, i.e. fintech <=> B-a-a-S intermediary <=> FSCS-insured bank, so the fintech can [legitimately] claim that customer funds are FSCS-insured, but if the intermediary fails, the customer could still be in limbo (or worse).

DullGreyGuy

Starling is one BaaS provider in the UK but then they are both the bank and the platform... dont know if they offer to be just the software. https://www.starlingbank.com/banking-services/banking-as-a-platform/ 

Edit - appears maybe they do https://enginebystarling.com/case-studies/ 

ClearBank is another popular one here, they're the platform for Allica (business bank), Oxbury (farmers bank), Recognise (mainly business bank) but each has its own banking license so deposits are directly protected rather than looking through to an underlying provider

eskbanker

Yay, another new account resuscitating an old thread purely to share some AI spam 🙄