This banking company is now making painful layoffs as it sheds half of its staff to focus exclusively on providing software to institutions.
Banking-as-a-service platform Treasury Prime has laid off about half of its nearly 100 employees, CEO Chris Dean confirmed on Wednesday.
Treasury Prime laid off teams focused on selling its products to other fintechs, including marketing, as a result of a strategic pivot that will, from now on, have the company focusing its sales efforts exclusively on banks.
The firm has historically marketed itself to fintechs, then matched the fintech with a banking partner that would use Treasury Prime’s platform.
However, Dean said the “interesting activity,” for the past six months or more, has been on the bank-direct side, and banks have wanted more to negotiate and ink deals with fintechs directly than with Treasury Prime as the liaison.
“If that’s where the puck is going, let’s just go there right now,” Dean said.
Treasury Prime is, first and foremost, a software company, he said, and the intention early on was that banks on its platform would find their own fintech partners.
“[But] the volume of fintechs that wanted to talk to the banks was far more than the banks could deal with, so they asked us to help and we ended up building out a whole go-to-market team for years to support that.
We get lumped [into a category of middlemen], though we really don’t think of ourselves like that,” he said.
“And at some point [in the] last six months, we realized that what we wanted to do when we started, finally, both the regulatory environment and the banks have caught up to that.
So let’s just do that directly.
It’s better business. It’s better for the banks, it’s better for the fintechs, the regulators like it better, it’s better all around.”
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Also Read: The US Treasury Direct is Now Freezing Customer Accounts
Other Banking News Today
Green Dot Bank is now facing a massive penalty stemming from compliance risk management issues predating the company’s current management.
Green Dot has been hit with a proposed consent order from the Federal Reserve stemming from compliance risk management issues predating the company’s current management, the fintech said Tuesday in its earnings report.
The digital bank set aside an “estimated liability” of $20 million in 2023’s fourth quarter to cover the proposed consent order, the company said but added that the “estimate of the aggregate range of reasonably possible losses” could total $50 million.
“We are confident in our financial and regulatory positions and do not expect this to impact our ability to operate and serve our customers and partners on an ongoing basis,” Green Dot CEO George Gresham said in a statement.
“The regulatory environment is continuously evolving, and we are committed to partnering and fully cooperating with our regulators to ensure our products are designed and marketed in ways that put our customers’ best interests at the forefront.”
Green Dot Bank has faced fraud allegations from various customers who have been locked out of their account from weeks to months.
Many customers are having difficulty receiving a direct response from the bank’s customer service department, with many claiming to have been given the runaround.
What is being done about it? Nothing so far, though many of these reports have been submitted to the Better Business Bureau (BBB).
“My funds are gone. I believe now the bank [Green Dot Bank] is holding it hostage. It’s my SS money and I can’t get it back, they keep extending the date.
I’ll get my new card with my money on it this has been going on since the August 1 and I was in the hospital when I was hacked..I want my money it’s mine not yours green dot,” says Sandra Machuga, who’s reported to FrankNez before.
Also Read: A US Bank is Now Freezing Some Retiree Accounts
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