Synapse Financial Technologies

Then for infrastructure, the prediction that transactional banks power the ecosystem gets a B.

Banking as a service scaled up, but then, you know, the Synapse collapse really set the market back.

Oh, yeah, Synapse.

And he gave Genpop banks a B-, but the one that really caught my eye was the prediction that big tech distributes banking.

Oh, yeah.

It does not insure apps.

You see, in May of 2024, a company called Synapse went bankrupt.

Synapse was the middleman between a bunch of savings apps and the real banks holding the money.

Over 100,000 Americans got locked out of $265 million overnight.

One of those apps, Yotta, had told its customers their money was FDIC insured.

So that's essentially how it works globally.

Even in the US where we had Evolve cr- and Synapse crisis over two years ago, it's the same thing where Evolve and Synapse are providing that same service to neobanks.

And then on top of that, the card networks charge interchange fees, even though the Nigerian interchange fees are very low compared to global rates.

They charge fees in the US.