Fintech Takes Fintech Recap: BaaS Breakdown, Super App Déjà Vu, and the Tomo Trainwreck
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May 7, 2025 Explore the ambitious move by Increase to acquire a bank for a robust BaaS future! California’s surprising regulatory actions raise questions about state vs. federal control. Dive into the retro vibes of Ryan Breslow's revamped super app with its flashy new features. And don’t miss the bizarre legal drama unfolding over trademark claims between TomoCredit and Prism, revealing some shifty tactics in the fintech world. With rants and insights, this discussion covers it all!
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BaaS Warp Core Trend
- Increase is an example trying to fuse technology with banking by buying a small bank to create a BaaS Warp Core.
- This is a new trend of infrastructure players moving closer to banking charters for tighter integration.
California Leads Uncommon BaaS Order
- California alone issued a consent order to Hatch Bank focusing on unsafe practices and AML violations in its fintech partnerships.
- This state-only action is unusual and may signal shifting regulatory dynamics in BaaS enforcement.
BaaS Space Consolidation
- Some banks like Main Street and Lewis and Clark have exited building their own BaaS tech due to underperformance and losses.
- Middleware providers may consolidate the space, resulting in a two-lane future: tech-forward banks and core providers.