Synapse, a Banking as a Service vendor, is collapsing and likely pulling others with it.

Many of the 2020–2021 funding vintage companies are struggling, but I wonder what happens to these 100+ fintechs that fully rely on it.

The latest one is Synapse, a Banking as a Service vendor, as reported on TechCrunch.

https://techcrunch.com/2024/05/25/with-a16z-backed-synapses-collapse-baas-fintech-is-a-mess-and-10-million-consumers-could-be-hurt/

For instance, Synapse customer teen banking startup Copper had to abruptly discontinue its banking deposit accounts and debit cards on May 13 as a result of Synapse’s difficulties. This leaves an unknown number of consumers, mostly families, without access to the funds they had trustingly deposited into Copper’s accounts

Its not the sort of software solutuon one has redunancy or nor resonably can move in very quick way.

Then even if they have a move-out plan, how much will that cost? Can these fintechs afford a rebuild of their solutions?

Software escrow services to the rescue?

Some time ago, I became aware of software escrow services. Initially, I saw it as a silly overhead and overkill that likely wouldn’t work in the long run. Looking at the tech world over the last two…