Mercury new banking partner switch

[Alexmorgan]

Seems mercury is switching away from Evolve bank and Trust and Choice bank to Column N.A bank

This switching lead to changing your account and Routing number

The case here that there will be new policies for and new KYC with the new banking

I guess mercury did this because of the disturbance that Choice and Evolve banks are making

The case here is that there is a transition period with deadlines for this which making me nervous and a disturbance in financials of our companies

Is there anything i need to be worried about here?

 

[ilke]

As far as I know, the transition is not from Choice Financial, only from Evolve.

Evolve had a large scandal with the Synapse Brokerage bankruptcy, and from what I have seen, it is experiencing correspondent issues as a result – and also losing trust among its existing FinTech client base.

With the clearing issues, it would cause problems on international wires to continue with Evolve. My expectation is that they will phase it out as a banking partner fully.

My opinion is that you don't need to worry, just accept the migration to the new bank.

 

[Alexmorgan]

As far as I know, the transition is not from Choice Financial, only from Evolve.

Evolve had a large scandal with the Synapse Brokerage bankruptcy, and from what I have seen, it is experiencing correspondent issues as a result – and also losing trust among its existing FinTech client base.

With the clearing issues, it would cause problems on international wires to continue with Evolve. My expectation is that they will phase it out as a banking partner fully.

My opinion is that you don't need to worry, just accept the migration to the new bank.

Mine is with Choice if what you saying then i should be fine

But they sent me Email to update my information so i guess its about people who are not US citizens and living over seas owned companies

 

[JohnnyDoe]

No worries. If your account is to be moved to the new bank, you will just be asked to confirm KYC, in a very simple and quick (1 min) online process.

 

[Alexmorgan]

No worries. If your account is to be moved to the new bank, you will just be asked to confirm KYC, in a very simple and quick (1 min) online process.

Are they are quitting Choice bank?

 

[JohnnyDoe]

Are they are quitting Choice bank?

No, only Evolve

 

[Kirito]

I did the task of reading (asking AI to summarize the agreement) and you must worry only if:

- You are a sole owner
- You are a foreign company (not only a registered LLC, but with no commercial presence in the USA)

 

[alain]

I did the task of reading (asking AI to summarize the agreement) and you must worry only if:

- You are a sole owner
- You are a foreign company (not only a registered LLC, but with no commercial presence in the USA)

You can just wait to see what comes from Mercury, AI won't help you!

 

[Martin Everson]

Coffezilla talks about the evolve scandal below. And mentions Mercury walked away the same day that shortfalls were being discussed between Synapse and evolve .

P.S Personally I would keep no money in any of these US fintechs. Even Evolve bank came off sounding shady as hell .

 

[ilke]

Coffezilla talks about the evolve scandal below. And mentions Mercury walked away the same day that shortfalls were being discussed between Synapse and evolve .

P.S Personally I would keep no money in any of these US fintechs. Even Evolve bank came off sounding shady as hell .

Coffeezilla video is unfortunately a very inaccurate rendition of events.

Simply Synapse moved funds between client accounts at Evolve and their own licensed brokerage. When you are a client of a broker, you are not insured by the FDIC (obviously). The problem was that Synapse terms allowed them to do, but they misinformed clients by not including these movements in the statements and issuing the statements displaying only Evolve details. It invested the funds through its brokerage (undescribed how this was done, but with the unknowing consent of clients). There are more in-depth facts to this case but frankly I don't feel like rambling on for paragraphs about the exact scenario Anyway, the point to consider is that Evolve has the reserve funds for the clients, only it does not know who it owes – and the other banks are saying it owes more than it does because Synapse supplied these incorrect statements that did not account for it sending funds to the pooled accounts of its brokerage. Evolve could have made mistakes in transferring Mercury at Synapse to Mercury's own accounts, but these are solely accusations, and I find it unlikely – because Synapse itself stated that there were separate custody accounts for Mercury funds (when Mercury went through them) due to the large sums being held – if Synapse was placing other FinTech's money in the Mercury safeguarding, this is again their fault.

Personally, I know some happy BaaS clients of Evolve and the bank seems decent except for issues with SWIFT clearing. High reserve account requirements, though.

I think US FinTechs are not risky, but you have to see where they are holding funds. For example, some hold everything in T-Bills, some are using Pershing custody (very reliable – BNY Mellon), some are holding it as just general USD with the backing bank; in the worst case, they are doing what Synapse does, sweeping deposits to their own brokerage.