/retail banking

News and resources on retail banking, consumer finance and reinventing customer experience in finance.
Synapse fallout leaves 85,000 Yotta customers locked out of accounts

Synapse fallout leaves 85,000 Yotta customers locked out of accounts

Savings app Yotta says 85,000 customers have been locked out of their accounts for three weeks because of the collapse of BaaS platform Synapse.

The customers have been unable to access a combined $112 million, Yotta co-founder Adam Moelis tells CNBC.

Yotta is one of a host of companies to be caught up in the collapse of Synapse and the BaaS firm's dispute with banking partner Evolve Bank & Trust.

Synapse and Evolve disagree on how much of Yotta's funds are held at Evolve and how much at other banking partners, says CNBC.

Says Moelis: “We never imagined something like this could happen. We worked with banks that are members of the FDIC. We never imagined a scenario like this could play out and that no regulator would step in and help.”

Synapse's biggest client, Mercury, decided to ditch the firm and work with Evolve directly earlier this year.

Then, in April, Synapse filed for bankruptcy, striking a deal to sell its assets to money moving fintech TabaPay. However, TabaPay has pulled out of the agreement.

Yotta is not the only Synapse client to suffer; last month, teen finance app Copper had to suddenly discontinue its bank deposit accounts and debit cards, leaving some customers unable to access their funds.

Comments: (0)