Banking as a Service Platform Solid Files for Bankruptcy

Solid, a banking platform, has filed for bankruptcy.

According to filings submitted to the Bankruptcy court in Delaware, the company reports unsecured trade debt totaling approximately $760,000 with a limited amount of current revenue and approximately $7 million in cash on hand and approximately $2 million of that held in non-liquid reserve accounts. At the same time, Solid is engaged in litigation with various entities and has endured “several governmental investigations and inquiries.”

As little revenue is currently being generated, and there are only 3 employees, Solid states that it has moved to maximize the value during the Chapter 11 sales process.

Jason Mikula outlined some of the challenges facing the Fintech, including being sued by its investors.

 

In recent years, banking platforms have emerged as a fast-growing sector of Fintech as legacy players and Fintechs seek to offer digital banking services. BNY reported that banking as a service is growing exponentially, holding a market value of $15.9 billion in 2023, which is predicted to grow to $64.7 billion by 2032. While growing fast, the sector has become highly competitive as there are many providers, and some banks are choosing to build in-house operations.

 



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