Fintech Safety Check
Relying on a single bank sponsor puts you at risk of business disruption if that sponsor experiences any regulatory action or a change in risk appetite due to heightened regulatory scrutiny.
With Modular Banking, multiple sponsor banks provide overlapping and modular services accessible to all fintechs platform-wide, so clients are far less open to risk caused by bank closures.
There are some inherently conflicting goals between fintechs and sponsor banks that push against each other in strong ways: a sponsor bank wants to balance revenue and risk, while fintechs want to attract more users and release more products. Risk-mitigated growth isn’t the same as maximum growth — your bank could conceivably cap your growth in order to moderate risk.
Synapse allows you to successfully diversify your risk across multiple sponsor banks through our bank partnerships.
Your sponsor bank’s risk appetite is an unknown variable that could literally shut you down, whether it’s a regulatory action against your sponsor bank, or the sponsor bank acting directly. Informed bankers reassess their risk appetite as you scale products and users, and could block your growth without notice.
Synapse can protect your fintech from reliance on a single bank sponsor that would otherwise cause lesser-prepared fintechs to cap their growth or cease operations altogether.
You may have to fundamentally roll back or cap your offerings, should you need to change your sponsor bank. A new sponsor bank may not offer the same services as your current bank, and you’ll need to agree to new terms of service — therefore, you may lose critical product features that you’ve promised to your users. In addition, your offerings and users are subject to being frozen while you are undergoing a sponsor bank transition.
Avoid being restricted to only one bank sponsor. Synapse provides access to multiple sponsor banks and services that are interchangeable, providing portability and operational continuity, if needed.
You are restricted to only have the bank sponsor options offered by your embedded finance platform so you don't the flexibility to choose your sponsor bank and seamlessly integrate them into your solution. This could mean you are out of luck when your platform-provided sponsor bank choices become limited.
Having an option of your own choosing can be critical. If sponsor bank options are limited for your program, Synapse offers the flexibility to choose your sponsor bank and seamlessly integrate them into your solution.
Relying on a single bank sponsor puts you at risk of business disruption if that sponsor experiences any regulatory action or a change in risk appetite due to heightened regulatory scrutiny.
With Modular Banking, multiple sponsor banks provide overlapping and modular services accessible to all fintechs platform-wide, so clients are far less open to risk caused by bank closures.
There are some inherently conflicting goals between fintechs and sponsor banks that push against each other in strong ways: a sponsor bank wants to balance revenue and risk, while fintechs want to attract more users and release more products. Risk-mitigated growth isn’t the same as maximum growth — your bank could conceivably cap your growth in order to moderate risk.
Synapse allows you to successfully diversify your risk across multiple sponsor banks through our bank partnerships.
Your sponsor bank’s risk appetite is an unknown variable that could literally shut you down, whether it’s a regulatory action against your sponsor bank, or the sponsor bank acting directly. Informed bankers reassess their risk appetite as you scale products and users, and could block your growth without notice.
Synapse can protect your fintech from reliance on a single bank sponsor that would otherwise cause lesser-prepared fintechs to cap their growth or cease operations altogether.
You may have to fundamentally roll back or cap your offerings, should you need to change your sponsor bank. A new sponsor bank may not offer the same services as your current bank, and you’ll need to agree to new terms of service — therefore, you may lose critical product features that you’ve promised to your users. In addition, your offerings and users are subject to being frozen while you are undergoing a sponsor bank transition.
Avoid being restricted to only one bank sponsor. Synapse provides access to multiple sponsor banks and services that are interchangeable, providing portability and operational continuity, if needed.
You are restricted to only have the bank sponsor options offered by your embedded finance platform so you don't the flexibility to choose your sponsor bank and seamlessly integrate them into your solution. This could mean you are out of luck when your platform-provided sponsor bank choices become limited.
Having an option of your own choosing can be critical. If sponsor bank options are limited for your program, Synapse offers the flexibility to choose your sponsor bank and seamlessly integrate them into your solution.
