Fintech Takes

S6 Ep5: Fintech Recap: Regulators Crack Down on BaaS, Buy Now Pay Later’s Newest Offerings, Paypal (Kind Of) Shocks the World

Feb 7, 2024

Blue Ridge Bank and Choice Bank face enforcement actions, raising questions about consumer alarm and regulatory response to BaaS. Klarna and Affirm expand offerings, including subscription-based services and high-yield savings accounts. The hosts debate PayPal's aggressive PR push and the $3.1 billion valuation of Bilt Rewards. They also touch on fast lane and smart receipts in fintech, as well as discuss Built, a payments and reward network for renters. The podcast ends with reactions to a ridiculous crypto scam video and the impact of the .ai boom in Anguilla.

55:52

Episode guests

Choice Bank

Blue Ridge Bank

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Enforcement actions on Blue Ridge Bank and Choice Bank raise questions about the ability of regulators to handle automation and scalability in Banking as a Service (BaaS)

Firms like Klarna and Affirm are expanding their offerings in the Buy Now Pay Later industry, introducing subscription-based services and high-yield savings accounts

Deep dives

Summary of Podcast Episode

In this podcast episode, the hosts discuss various FinTech trends and developments. They start by mentioning upcoming FinTech events and their travel schedules. They then dive into the news about enforcement actions imposed on Blue Ridge Bank and Choice Bank. They analyze the potential impacts on partner banks and middleware in the banking as a service (BASS) space. The hosts also discuss the recent expansions and advancements in the Buy Now Pay Later (BNPL) industry. They explore the introduction of subscription options and the entry into the deposit space by firms like Klarna and Affirm. The episode wraps up with a discussion on PayPal's recent announcements, highlighting the underwhelming reception and the need for a different PR strategy. Lastly, they touch on Built Reports, a startup that offers rewards to renters for paying their rent, and the potential economic model behind it.

Introduction

4min

Enforcement Actions against Blue Ridge Bank and Choice Bank

5min

Regulatory Enforcement Actions Against BaaS Banks

7min

Mercury vs. Synapse Court Ruling and Buy Now Pay Later Providers Expanding

16min

Discussion on Fast Lane, Smart Receipts, and Cash Back Offers in Fintech

2min

PayPal's Approach and Recent Release

6min

Built: A Payments and Reward Network for Renters

10min

Discussion on a Ridiculous Crypto Scam Video and the .ai Boom Impact

4min

Just sit right back and you’ll hear a tale, a tale of a fateful trip. That started from this banking port aboard this tiny… okay, so we promise to give up on this BaaS island analogy eventually, but in the meantime, our cruise tickets over to BaaS island are non-refundable, so let’s dive into the latest happenings.

With Blue Ridge Bank strapped with a second enforcement action just 18 months after its first action, we have to ask— should consumers be alarmed? And with Choice Bank also disclosing its latest enforcement action, is this more of a reflection of the apps they’re associating with (*cough* Mercury and Synapse *cough*) or is it simply an indication that regulators don’t know how to handle the level of automation and scalability in BaaS?

Meanwhile, over in Buy Now, Pay Later land, Jason and Alex chat about the recent product offerings that Affirm and Klarna have vowed to provide, including subscription-based services and high-yield savings accounts. But more importantly, what is the point of this to consumers? Is it partially due to Klarna’s hopes to IPO or is this just pointless noise?

According to PayPal, PayPal shocked the world. Or, um... at least they shocked one person, somewhere with their latest announcement. Jason denounces PayPal’s latest aggressive PR push, while Alex plays devil’s advocate, suggesting the brand might be going back to the basics for the better.

Plus, the guys discuss whether the $3.1 billion valuation of Bilt Rewards is justified, what’s up with God convincing a pastor to sell his worthless cryptocurrency, and who owns the .ai domain name.

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