Comment by manquer

Some are better than others at bookkeeping, however FDIC only insures against risks of the bank they regulate. They don’t regulate the risks at the fintech co and they don’t insure it .

There is always residual risk between the bank and you with the fintech company. That’s what got Yotta in trouble ,they basically outsourced the heavy lifting of managing ledgers to synapse which you as customer have no control over.

For most people that risk is not worth losing their already modest savings over , that is why banks are regulated and FDIC exists after all.