There is never a dull moment in the Banking-as-a-Service space. Treasury Prime is the latest company to make news in the space.
While Jason Mikula broke the story on LinkedIn it was confirmed by CEO Chris Dean on the company blog yesterday. Treasury Prime has laid off about half the company and is pivoting to a more direct approach with banks.
While Treasury Prime had established itself as a major player in the BaaS space by selling to fintechs, going forward it will be focused on selling software to banks.
The company announced a new Bank-Direct product that will help banks work directly with fintechs and brands. So rather than be a type of matchmaking service between banks and fintechs they will work with banks to establish direct relationships with fintechs and other non-banks.
Dean also acknowledged the increased regulatory scrutiny that has brought a lot of uncertainty to the BaaS space. And regulators want banks to have direct oversight of their fintech partners and not use an intermediary.
I have an interview scheduled with Chris Dean at Fintech Meetup on Tuesday to record a podcast episode, it suddenly got a whole lot more interesting. Look for that in late March.
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