California-based Banking-as-a-Service (BaaS) fintech, Treasury Prime, has announced a strategic reorientation, emphasizing the direct sale of its embedded banking technology to banks. This shift marks a departure from its previous model of selling BaaS offerings to fintechs. The company cites the decision as essential for sustained growth and plans to concentrate on the area of its business with the strongest potential. Despite the strategic pivot, Treasury Prime reassures its existing fintech partners of continued support, emphasizing that the change in focus will not impact their operations.
To align with the new strategy, Treasury Prime is launching a Bank-Direct product, designed to empower banks in supporting the entire lifecycle of direct relationships with fintech customers. CEO Chris Dean underscores the increasing significance of direct partnerships between banks and fintechs in the future of embedded banking. However, this shift necessitates workforce adjustments, with some employees either leaving the firm or being redeployed. While the exact number of layoffs remains unconfirmed, reports suggest that the cuts may affect around half of Treasury Prime's approximately 100 employees. This strategic move follows the company's $40 million Series C fundraising round led by BAM Elevate about a year ago.
