Evolve Bank & Trust announced on Saturday (October 19) that it is preparing to return funds held by Evolve to Synapse Brokerage end users affected by the Synapse bankruptcy.
The financial services institution announced in a press release on Saturday that it will launch an online resource center on Wednesday (October 23) to provide information about the reconciliation process and expected schedule for return of funds.
On that day, the Resource Center will provide information on how funds will be distributed by Rust Consulting, an Excela Technologies brand that Evolve has hired as the administrator to distribute funds to end users. Additionally, an email will be sent to users on Wednesday.
End users with balances on Evolve will be asked to select a payment method on November 4, and payments will begin “immediately,” according to a press release.
“Evolve has been deeply engaged in reconciling end user funds in Synapse Brokerage since we identified significant irregularities in end user balances reported by Synapse,” said Scott Lenoir, Founder of Evolve Bank and Trust. said in a release. “First and foremost, we would like to thank our end users for their patience and understanding as we processed millions of transaction records during the reconciliation process.”
PYMNTS reported in June that the situation with Synapse Brokerage’s cash management program, where Evolve holds funds, is complicated. Evolve had approximately $46.9 million in accounts created for payment processing activities on behalf of Synapse. It was not a program bank for Synapse Brokerage’s money management program and did not directly hold end-user deposits for the program.
Evolve reports that it has identified “a number of significant discrepancies” in the Synapse Brokerage program ledger that do not match the actual movement of funds to and from Evolve, and the bank says it will continue to work on further collaboration across the Synapse ecosystem. He stressed that without this, no single bank will be able to complete the full reconciliation.
The problem with Synapse is that Mercury, Synapse’s largest customer, has decided to work directly with Evolve, Synapse’s core banking partner, eliminating the need for Synapse as an intermediary and providing access to Synapse’s other customers. It started latent or came to light when it set off a chain of events. Who was relying on fintech providers, PYMNTS reported in May.
More information: Banking, Cash Management, Core Banking Partners, Evolve Bank & Trust, Excela Technologies, FinTech, News, PYMNTS News, Rust Consulting, Scot Lenoir, Synapse, Synapse Bankruptcy, Synapse Brokerage, What’s Hot
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