FDIC’s Bold Proposal – Safeguarding Fintech Users and Addressing the Fragile Banking Partnership

The Federal Deposit Insurance Corporation’s current proposal doesn’t land softly— it thuds like a wake-up call. Banks partnering with fintech firms have been given notice, a clear signal that the world of finance, with all its gloss and glamour, is still fragile. The collapse of Synapse— where over 100,000 people suddenly found their money trapped— was a cold slap of reality… a reminder that innovation can sometimes be one step ahead of caution. FDIC unveils rule forcing banks to keep fintech customer data in aftermath of Synapse debacle: The rule, aimed at accounts opened by fintech firms that partner with…