There may be relief for the thousands of Americans whose savings have been locked in frozen fintech accounts for the past two months.
Banks involved in the mess caused by the collapse of fintech intermediary Synapse have made progress piecing together account information for stranded customers that could result in a release of funds in a matter of weeks, according to a person briefed on the matter.
The development comes as regulators, including the Federal Reserve and the Federal Deposit Insurance Corporation, pressure the banks involved to release funds after media and lawmakers have heightened awareness of the debacle.
Beginning in May, more than 100,000 customers of fintech apps like Yotta, Juno and Copper have been locked out of their accounts.
"We're strongly encouraging Evolve to do whatever it can to help make money available to those depositors," Federal Reserve Chair Jerome Powell told the Senate banking committee Tuesday.
Persons:
Banks, We're, Jerome Powell, Scot Lenoir, Jelena McWilliams, Sankaet Pathak
Organizations:
Staff, Evolve Bank & Trust, Bank, Synapse, Federal Reserve, Federal Deposit Insurance Corporation, Evolve
Locations:
California