I am fairly close to receiving a business operations offer for a seed stage startup that is a banking platform for e-commerce businesses. Banking / small banks are a mess right now - does anyone have any thoughts on this business model and how it is effected? #fintech #startup
Work for a startup in the banking/fintech space. I would be very skeptical evaluating a seed-stage entrant, particularly on the e-commerce side. Banks have become much slower to support startups and it sounds like the business would be a proxy, making it even riskier for the underlying bank. Plus there's a risk that there are still shoes that may drop in the industry from regulators particularly impacting BaaS.
They already have a product / bank on the back end and customers . Does that change anything? Appreciate the insight!
Better than not having a bank or live customers, but as you have now surely seen, banks are fallible, regulators can increase their scrutiny, etc. Even if the bank continues to support your business, they may become more stringent on which of your customers they will support in the future. And these changes may be disruptive to your strategy or revenue base. In short, it's an additional set of risks, which I would factor into my consideration. And for me, it would have to be an amazingly compelling offer and opportunity to jump ship to a company in the context you described.
How original… it’s not like an e-commerce business can get a business account at a regular bank