Fintech One•On•One

Jason Mikula of Fintech Business Weekly on the development of banking-as-a-service

Mar 7, 2025

In this engaging discussion, Jason Mikula, Publisher of Fintech Business Weekly and BaaS expert, delves into the rapidly evolving world of Banking-as-a-Service. He shares insights about the challenges fintechs face, the nuances between BaaS and embedded finance, and the significance of FBO accounts. Jason also explores the implications of the Synapse bankruptcy saga, the regulatory landscape's influence on partnerships, and the potential recovery of funds for affected consumers. His expertise offers a compelling perspective on the future of fintech.

43:12

Episode guests

Jason Mikula

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Episode notes

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Quick takeaways

The podcast highlights the critical challenges faced by middleware players in the Banking-as-a-Service ecosystem, particularly in compliance and operational management as they scale.

A distinct difference between Banking-as-a-Service as a foundational infrastructure and embedded finance as integrated financial products is emphasized for better understanding of their roles.

Deep dives

Challenges of Middleware Models

The podcast discusses the challenges associated with middleware players in the banking as a service (BAS) landscape. It highlights that many of these players face difficulties when managing program responsibilities due to the rapid growth of customer-facing fintechs, which are often early-stage and venture-backed. Such startups prioritize quick growth over properly scaling controls, leading to a range of issues, particularly regarding compliance and operational management. This consensus suggests that the sustainability of the middleware model is questionable and calls for reevaluation of responsibilities within these partnerships.

Intro

2min

Navigating Fintech from the Netherlands

19min

Understanding Omnibus and FBO Accounts in Banking-as-a-Service

4min

Unraveling the Synapse Bankruptcy Crisis

5min

Navigating the Fallout of Fund Freezing in Financial Services

3min

Challenges in Banking-as-a-Service

10min

In the last year I don't think there is any area of fintech that has received more attention than the Banking-as-a-Service (BaaS) space. And it is not just the Synapse debacle, it is all the consent orders that have come out of the bank regulators. We have a banking system that pretty much demands that fintech companies partner with banks and we are still yet to figure out what the optimal business model is here.

My next guest on the Fintech One-on-One podcast is Jason Mikula, the publisher of Fintech Business Weekly and the Head of Industry, Strategy, Banking and Fintech at the risk decisioning platform Taktile. He has become one of the leading authorities on BaaS and has recently authored a book on this topic. It is the most comprehensive look at BaaS and the many challenges it has faced and we delve into these challenges in this episode.

In this podcast you will learn:

How Jason ended up living in the Netherlands.
His impetus for starting the Fintech Business Weekly newsletter.
What attracted Jason to focus so much on Banking-as-a-Service.
Why he decided to write a book on BaaS.
How he frames the difference between BaaS and embedded finance.
Why fintech companies have been attracted to omnibus or FBO accounts at banks.
The interview that Jason did with founder and former CEO of Synapse, Sankaet Pathak.
Where we are with the Synapse saga (as of mid-February, 2025).
What Jason thinks the likelihood the impacted consumers will get their funds back.
Whether we will ever learn what happened to missing 90-odd million dollars.
His thoughts on the middleware model that was core to the development of BaaS.
How he views the BaaS model evolving long term in the U.S.

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