What factors and considerations do Fintechs take into account when choosing which BaaS platform to form a partnership with?

Guest: If we're building a commoditized product, we might just go for the one that has the cheapest and less, in the quickest time to market.

Just like ACH, every single banking as a service, middle layer provider is going to provide ACH from Synapse, Bond, Unit. Any of these middleware companies, you can build ACH into your product. And so that's just a commodity, right? The question becomes, well, how good is that ACH product? Because even with the ACH product, there's a lot of nuances that people might have preferences for. And that's why there's a company Moov. Moov today is essentially an open source ACH company, they essentially allow companies to embed ACH products into their platforms.

Moov is a great option for you in a way that Treasury Prime isn't, you can't just call just the Treasury Prime ACH API. You can't do that. No, you have to sign a contract. You got to be a client. You’ve got to onboard with the partner bank. You have to have a relationship with them. Then you can start embedding for your product. With Moov, you don't have to do that.

But if we have a very specific offering, for example, rules-based money movement, you can't embed that experience in. As you start building, you as the FinTech, if you use Synapse for something that is very core to what you're building, but then you want to build an experience on top of that. You might realize that you're having trouble doing that because your apps isn't working well with this other third party that allows you to do X.

So then all of a sudden you're in this position of like, well, I gave him a bunch of controls, feed to market is there, I paid a bunch of money. But I can't customize the experience the way that I want it. This is where we're going into, in my opinion, the future of this, these customized experiences.

The middleware platforms like Unit, Treasury Prime, Bond, no one is doing billions of dollars in volume. Chime, I believe, went to market on Synapse and then quickly came off of Synapse because they wanted to build a customized experience. So that's the problem with middleware products, is that as you get scaled, you get off of it because you don't want to give them economics. So you start building more things in-house.

That's the big problem. That's the same thing with Stripe. Stripe is an awesome go to market strategy, but people leave Stripe because it is too expensive.