Treasury Prime trims workforce amid strategic pivot to focus on direct-to-bank partnerships
California-based Banking-as-a-Service (BaaS) fintech Treasury Prime has announced that it is “reorienting its business” to focus on selling its embedded banking tech directly to banks.
Treasury Prime is reorienting its business
As a result of this strategic pivot, the company tells FinTech Futures that it has “had to make the difficult decision to adjust our staffing needs to concentrate on the area of our business with the strongest capacity for continued growth”.
“We understand the impact this will have on affected employees, and are providing severance, healthcare continuation benefits, and career outplacement services to support them through this transition,” the firm adds.
Founded in 2017, Treasury Prime had previously also sold its BaaS offering to fintechs to enable them to “directly connect to the underlying infrastructure of banks through its APIs”.
However, CEO Chris Dean writes in a blog post on the company’s website that “it’s become increasingly clear to me that the future of embedded banking is through bank-direct, fintech partnerships”.
The company tells FinTech Futures that “today, the most successful fintechs are forging direct partnerships with banks”.
“To meet our customers’ evolving needs, Treasury Prime is reorienting its business to more effectively sell, manage, and support the growing demand for these bank-direct, fintech relationships.”
Therefore, the BaaS vendor is launching a new Bank-Direct product, which it says will enable banks to support the “entire lifecycle of a direct relationship with a fintech customer, including the sales, onboarding, management, and support of that partnership”.
In his blog post, Dean adds the company “will continue to support our existing fintech partners who use our platform today”.
“There should be no impact on their business. Literally none. In fact, we are putting additional, dedicated resources in place so that we can respond to fintech clients more quickly,” he writes.
A consequence of this shift in direction is staff cuts, with Dean writing in his blog post that “some very talented colleagues will be leaving our firm or redeployed to other parts of our company”.
While the exact number of layoffs has not been confirmed, Banking Dive reports that the cuts could impact around half of the company’s approximately 100 employees.
The move comes around a year after the firm completed a $40 million Series C fundraising round led by BAM Elevate.
