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popular banking appsCNBC
•82% Informative
The collapse of middleman Synapse has revealed fintech's promise of safety as a mirage.
More than 100,000 Americans with $265 million in deposits have been locked out of their accounts.
The implications of this disaster may be far-reaching.
The most popular banking apps in the country partner with banks instead of owning them.
LendingClub CEO Scott Sanborn : "If it's your spending money, you need to be dealing directly with a bank" Block and PayPal are publicly traded; Chime is expected to launch an IPO next year .
Regulators focus not on Synapse and other middlemen, but on the banks they partner with, Sanborn says.
There is a shortfall of up to $96 million in funds owed to customers, court-appointed bankruptcy trustee says.
Synapse's shoddy ledgers and its system of pooling users' money make it difficult to reconstruct who is owed what.
FDIC insurance isn't a pot of money to generally make people whole, it is there to make depositors of a failed bank whole.
VR Score
82
Informative language
80
Neutral language
45
Article tone
informal
Language
English
Language complexity
47
Offensive language
not offensive
Hate speech
not hateful
Attention-grabbing headline
not detected
Known propaganda techniques
not detected
Time-value
short-lived
External references
22
Source diversity
18
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