Osfin.ai

What next? Obviously this analysis is for a single year, with input received only from Synapse. However just this has already thrown up nearly ~ $6M in transactions that could have been incorrectly charged to customers. Next, we need to understand the other side of the puzzle, i.e. data from Evolve Bank’s Core Banking System, access to the Synapse database and a review of Synapse’s agreements with Evolve. US regulators, primarily Federal Reserve St Louis, could potentially push all parties involved to share data for reconciliation with companies like Osfin. However this decision is something that consumers, fintech companies and the general public will need to demand. On our part, Osfin is committed to helping consumers get justice and is available to assist any of the parties involved here. Disclaimer: Osfin's analysis is based on the data provided and we do not verify it's authenticity

Bank Fees charged to customers? Of all the categories of transactions we tagged, we identified $5.97M with the transaction description “Account Analysis Charges”. As per Sankaet, these bank fees were not disclosed in customer agreements that Evolve had signed off on and these accounts were presented as “no fee” accounts to customers. Additionally, Sankaet clarified that Synapse marinated a separate Operating Account at Evolve from which it was paying out any invoices raised by the bank, so even if any fees were owed by Synapse they should not have been charged to customer DDAs.

$50M+ of customer funds are still missing as a result of the Evolve-Synapse issue & we are still left wondering what happened.. Earlier this year a dispute over account balances arose between Synapse & Evolve Bank. This resulted in customers of fintech companies like Yotta getting locked out ~$50M+ of their funds Osfin is a reconciliation automation platform that processes 500M transactions/day for some of the world’s largest banks & fintechs. So when the FDIC trustee in charge of the Synapse bankruptcy mentioned they didn’t have the funds to do a reconciliation exercise to understand what happened, we volunteered Here’s a thread of what we found out when we reached out to former Synapse CEO, @sankaet