Money For the Rest of Us

Don't Lose Access to Your Cash: Comparing Banks, Neobanks, and Fintech Platforms for Cash Savings

Jun 19, 2024

The podcast discusses the chaos in the fintech space due to the bankruptcy of Synapse Financial Technologies. It explores the differences between traditional banks, neobanks, and non-banks. Listeners are advised on how to protect their cash savings when investing with these institutions.

24:10

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Understand risks of placing cash in fintech apps due to bankruptcies like Synapse, impacting access to funds.

Verify FDIC insurance protection when investing in savings apps like Copper to ensure reputable financial institutions hold deposits.

Deep dives

Cash Management Challenges with FinTech Platforms

Users faced challenges accessing their funds in FinTech platforms like Yotta and Juno due to the bankruptcy of Synapse Financial, a middleware company connecting these platforms with banks. Synapse's bankruptcy left millions of dollars in FBO funds unreconciled, impacting over a hundred FinTech platforms and potentially creating a significant cash shortfall.

Intro

2min

Challenges and Reconciliation Efforts in a FinTech App Bankruptcy

10min

Comparing Banks and FDIC Protection for Cash Savings

2min

Navigating Risks in Cash Savings Apps through Banks, Neobanks, and FinTech Platforms

13min

Millions of fintech app users have lost access to their cash. In this episode, we explain why this happened and show you how to protect yourself when placing cash with traditional banks, neobanks, and fintech platforms.

Topics covered include:

The mass chaos in the fintech space spawned by the bankruptcy of Synapse Financial Technologies
What are FBO accounts, and why they are so troublesome
What is the difference between a traditional bank, a neo bank, and a non-bank
What to look for and protect yourself when investing your cash savings

Sponsors

NetSuite

Delete Me – Use code David20 to get 20% off

Our Premium Products

Asset Camp

Money for the Rest of Us Plus

Show Notes

CHAPTER 11 TRUSTEE’S INITIAL STATUS REPORT BY UNITED STATES BANKRUPTCY COURT CENTRAL DISTRICT OF CALIFORNIA SAN FERNANDO VALLEY DIVISION—CourtListener

Fintech platform Synapse raises $33M to build ‘the AWS of banking’ by TechCrunch—Synapse

X Post by Jason Mikula—X

"Full Reconciliation... May Not Be Possible," Synapse Trustee Says by Jason Mikula—Fintech Business Weekly

Mercury Seeking $30M From Synapse, Emergency Court Filing Reveals by Jason Mikula—Fintech Business Weekly