The business informs FinTech Futures that it "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" as a result of this strategic pivot.

The company continues, "We are offering severance, healthcare continuation benefits, and career outplacement services to support them through this transition because we recognize the impact this will have on the affected employees."

Since its founding in 2017, Treasury Prime has allowed fintechs to "directly connect to the underlying infrastructure of banks through its APIs" by selling them its BaaS solution.

On the other hand, "it's become increasingly clear to me that the future of embedded banking is through bank-direct, fintech partnerships," as CEO Chris Dean states in a blog post on the company's website.

"Today, the most successful fintechs are forging direct partnerships with banks," the company says in an interview with FinTech Futures.

Treasury Prime is reorienting its company to better market, manage, and support the increasing demand for these bank-direct, fintech connections in order to better meet the changing demands of our consumers.

In order to serve banks in the "entire lifecycle of a direct relationship with a fintech customer, including the sales, onboarding, management, and support of that partnership," the BaaS provider is creating a new solution called Bank-Direct.

Dean continues, saying the business “will continue to support our existing fintech partners who use our platform today,” in his blog post.

"It shouldn't have any effect on their company. Exactly none. To be more responsive to fintech clients, we are really adding more, specialized personnel to our team," he says.

Dean stated in his blog post that “some very talented colleagues will be leaving our firm or redeployed to other parts of our company” as a result of this change in direction.

The precise number of layoffs has not been disclosed, but according to Banking Dive, the reductions may affect about half of the roughly 100 workers at the company.