Fintech Recap: BNPL’s Black Box, Synapse’s Maybe-Bailout, and Crypto Dreams

Jul 2, 2025

FICO scores are now integrating BNPL data, but many companies hesitate to share, raising questions about their competitive edge. The CFPB's new move could create a lifeboat for depositors in the Synapse bankruptcy situation—a proposed way to make people whole without a traditional bailout. Also, the FHFA is considering crypto as mortgage collateral, despite low usage rates among households. Tune in for insights on the challenges facing the fintech scene and the quirky interactions of established banks with the digital world.

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INSIGHT

Why BNPL Firms Resist Sharing Data

Furnishing BNPL data to credit bureaus involves regulatory risk and compliance costs.
BNPL providers have incentives not to share data since it could expose credit risks and ease competitor insights.

INSIGHT

BNPL Use Among Subprime Consumers

Many BNPL users are subprime borrowers using it as off-balancesheet credit with no credit bureau impact.
Furnishing data would harm these consumers while cutting competitive advantages for providers.

INSIGHT

Customer Data as Competitive Moat

BNPL providers see customer payment performance data as a competitive asset.
Furnishing data risks losing this edge by exposing behavioral insights to broader market players.

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Welcome back to Fintech Takes. I’m Alex Johnson, joined (as always) with my partner-in-fintech-recapping, Jason Mikula. Let’s get into it.

First up: at long last, FICO score versions now include BNPL data, but there’s a catch (several, actually). Affirm is furnishing data, but other major players like Klarna and Afterpay? Not so much. We dig into why most BNPLs resist sharing data (hint: it’s expensive, complicated, and gives away their competitive edge), and how open banking could help—if you could reliably connect Klarna to Plaid (you can’t).

Then, just when we abandon BaaS Island, the CFPB shows up with a lifeboat with a surprise move in the Synapse bankruptcy. A four-page filing could open the door to using the Civil Penalty Fund to repay depositors. It’s not quite a fintech bailout, but it might be the cleanest way to make people whole … and quietly shut the whole thing down. All of which still raises the bigger question: why did this happen in the first place (BaaS was supposed to be a thin layer on top of FDIC-insured banks)?

Next, FHFA (which oversees Fannie and Freddie, federal home loan banks, and a whole host of other interesting things) does crypto policy by tweet. Director Bill Pulte told Fannie and Freddie (via Twitter) to undertake a study for accepting crypto as mortgage collateral. According to the latest Federal Reserve data, only 8% of households used crypto in any fashion in 2024. So… why? Because someone asked.

And in our Can’t Let It Go corner: Jason roasts ABN AMRO’s new sub-brand, BUUT (yes, BUUT), while I spiral over Circle’s $56B IPO valuation (this is meme coin math applied to a narrow bank!).

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