How does Synctera address variance in community bank capabilities and fintechs' needs for specific bank partnerships?

The different banks will have different risk tolerances. That's the primary difference between them. Some of them are quite small, so they'll have smaller balance sheets, which means it's harder for them to do lending, but you can also offload the lending balance sheet to someone else or the fintech will bring their own lender.

In general, we need banks that will do the classic neobank -- pet bank is the perfect example for people that love pets -- and we also need someone that will do remittances. Not all of our banks will do that because they say, "I don't want to deal with the KYC risk and the fraud." Very few banks will do cannabis or crypto, but we’ve found bank partners that are interested in those areas operating on our platform today. Our job is to basically think of all the possible use cases of the fintech and make sure we have at least two or three banks on the other side that can do the same service or are interested in supporting that use case.

When we come to the fintech, we say: “Okay, we've pitched you to the banks on the platform. We do the matchmaking. And here are two offers with different pricing considerations, different compliance considerations, different timing considerations. This bank says they'll bank you, even though you're doing remittances, but it's going to be really expensive on KYC. And this bank says, ‘We'll let you do remittances, but we're going to take six months to do a compliance review.’ Which one do you want? Do you want to launch tomorrow, or do you want to wait for six months?”

That's the matchmaking process. We do a bunch of due diligence on the fintech, help them get ready, build their app, test out what they're doing and then help them pitch to the banks, so they don't have to do that themselves.