Synapse, a Banking-as-a-Service (BaaS) platform, is laying off nearly a fifth of its staff. The company made cuts in areas “that were staffed for unrealized growth or redundancy,” founder and CEO Sankaet Pathak said in a Medium post. “The current macroeconomic conditions have begun to impact our clients and platforms, affecting our anticipated growth,” he added. Synapse reached profitability and became cash flow positive last year. Streamlining operations should make

State Employees’ Credit Union in Raleigh, N.C., has a new CEO. The $50 billion-asset credit union said in a press release that Leigh Brady had succeeded Jim Hayes, who resigned to become CEO of State Department Federal Credit Union in Alexandria, Va. Leigh has been SECU’s chief operating officer since 2021. “No one understands SECU better than Leigh Brady,” Chris Ayers, the credit union’s chairman, said in the release. “She

Comerica in Dallas plans to “organically” exit the mortgage warehouse business. The $91.2 billion-asset company disclosed in a presentation for a banking conference hosted by Morgan Stanley that the exit will be largely completed by the end of this year. Comerica said the exit should improve capital efficiency and improve its loan-to-deposit ratio by 150 basis points. The strategy should allow for an exit at “full value” compared to selling

Majority, a challenger bank aimed at U.S. migrants, has raised nearly $9.8 million in its fourth round of funding. Valar Ventures and Heartcore Capital, existing Majority investors, participated in the latest round. The neobank plans to open a community meetup space in Laredo, Texas, and publish a financial handbook for Mexicans later this year, according to TechCrunch. Majority has offices in Houston and in the Florida cities of Miami, Orlando

The Bancorp in Sioux Falls, S.D., has renewed its banking services agreement with Chime Financial. The $7.6 billion-asset company said in a press release that it entered into a “long-term extension” that will allow it to continue to hold Chime member deposits, among other things. “We are thrilled to not only renew, but to also expand our partnership with Chime, as it solidifies our dedication to driving the future of

Plains Bancshares in Plains, Kan., has applied with regulators to buy Alden Bancshares in Sterling, Kan. The parent of the $381.4 million-asset Plains State Bank also plans to rebrand as Bank of the Plains on June 20. The bank will pay an undisclosed amount of common stock to buy the parent of the $21.9 million-asset Alden State Bank. “Our two banks bring a rich history of community support having a

Entrust Bank, a de novo planned for Los Altos, Calif., aims to become a minority depository institution (MDI) focused largely on the area’s Asian-American population. Organizers said in their application with the Federal Deposit Insurance Corp. that most of the proposed bank’s board represent minority groups. Entrust will primarily target small and midsize businesses, real estate owners and individuals in Santa Clara and San Mateo counties. The organizing group, which

The Consumer Financial Protection will soon seek comments for an open banking rule with plans to finalize the rule next year. CFPB Director Rohit Chopra provided the update in a blog post. The bureau is required by a section of the Dodd-Frank Act to finalize the rule. The CFPB aims to use a new personal data rights rule to shift to open banking by removing obstacles for switching banks, jumpstarting