Welcome to The Free Toaster!
The newsletter for marketing pros at banks and lenders. 

Inspired by the free toasters banks used to give to each new customer, we’re here to help you acquire more customers at scale. We deliver fresh news, data, and insights to help you acquire more customers—minus the breadcrumbs.

TL;DR

The collapse of Synapse revealed critical flaws in FinTech-bank partnerships, freezing millions of dollars from 2M users and sparking calls for transparency. Ally Financial may sell its credit card business, retreating from a competitive market. Meanwhile, Sunbit launched co-branded credit cards to rival Affirm and Klarna, and Intuit saw Q1 FY25 revenue climb 10%, with Credit Karma’s 29% surge stealing the show. Moody’s bought Numerated for digital loan innovations, while EarnIn faces a D.C. lawsuit for allegedly predatory practices. Lastly, LendingTree expanded into SMB insurance, and Agentio raised $12M to revolutionize creator-driven ads.

News

(11/26) The collapse of Synapse, a banking-as-a-service provider, exposed deep flaws in the bank-FinTech partnership model. With $60 billion in annualized money movement and 2 million users, Synapse failed to reconcile funds, leaving customers without access to millions, including life savings. The disaster underscores the need for better operational transparency and regulatory oversight in these collaborations. Experts argue that while the fallout is grim, it offers a chance for banks and FinTechs to develop partnerships that are more transparent, resilient, and aligned with consumer protection standards. [PYMNTS]

(11/22) Ally Financial is considering selling its credit card business just three years after acquiring it for $750 million. The Detroit-based auto lender, which reported $2.1 billion in average credit card loans in Q3, is working with a financial adviser to explore options. This potential sale reflects a retreat from the fiercely competitive credit card market, where Ally faces heavyweights like Capital One. Ally’s credit card ventures have faced turbulence before, including a canceled $2.65 billion deal to acquire CardWorks in 2020 during pandemic uncertainty. [Bloomberg]

(11/22) Sunbit, a BNPL provider known for its pay-over-time options in industries like automotive repair and health care, is entering the co-branded credit card market. Partnering with retailers like Ollie’s Bargain Outlet, the company aims to disrupt the space with niche-focused rewards cards. With 150,000 cardholders and $170 million in balances, CEO Arad Levertov sees this move as a natural extension of their strategy to stand out against competitors like Affirm and Klarna. [American Banker]

(11/21) Intuit had a strong Q1 FY25, with revenue climbing 10% year-over-year to $3.3 billion, driven by standout growth from its Global Business Solutions Group and Credit Karma. Credit Karma, the personal finance platform, stole the show with a 29% revenue surge to $524 million, thanks to booming demand in personal loans (11 points of the 29% growth), auto insurance (9 points), and credit cards (8 points). While Consumer Group revenue dipped 6% due to last year's extended tax filing deadlines, Intuit remains confident, reiterating its FY25 guidance and targeting up to 13% annual revenue growth. [Intuit]

(11/21) Moody’s Corporation acquired Numerated Growth Technologies, a loan origination platform. This move strengthens Moody’s Lending Suite by integrating Numerated’s AI-driven tools for application, decision-making, and loan operations with Moody’s credit assessment expertise. With over $65 billion in loans processed through Numerated's platform, this acquisition aims to provide an end-to-end lending solution, enabling banks to enhance user experiences and automate processes during digital transformation. The financial terms remain undisclosed, and the deal is not expected to impact Moody’s 2024 results. [Moody’s]

(11/20) The D.C. Attorney General sued EarnIn, alleging the fintech misrepresents its "cash out" service as earned wage access while operating as a high-interest loan product with fees that effectively exceed 300%. The lawsuit claims EarnIn hides its "Lightning Speed" fees ($3.99–$5.99) and default "tips" up to $14 in fine print, contradicting its "no fees, no interest" marketing. With 20,000 D.C. users and over a million transactions since 2016, EarnIn faces allegations of operating without a required lending license and is accused of exploiting underbanked consumers despite arguments that it provides critical financial tools. [Banking Dive]

(11/20) LendingTree partnered with Coverdash to offer embedded insurance solutions for small businesses, enhancing its financial product lineup beyond loans. This collaboration provides SMBs with access to insurance options like general liability, workers' compensation, and cyber insurance, helping them lower risk profiles and improve loan approval odds by 25%, according to Federal Reserve data. With Coverdash's technology seamlessly integrating into LendingTree's platform, this move deepens LendingTree's commitment to empowering SMB growth while positioning itself as a comprehensive financial services partner. [PYMNTS]

Other stuff we’re reading and listening to

(11/26) Tomas Campos sits on the Affiliate Marketing For Lenders Podcast to discuss Spinwheel’s API that can pull down name, address, zip, social security number, and more with just a phone number and a DOB. He goes deep into how his tech helps lenders improve application rates in performance marketing funnels [Apple Podcasts]

(11/22) Tearsheet podcast features Peter Renton discussing fintech trends like banking-as-a-service, embedded finance, and open banking’s transformative potential [Tearsheet].

(11/21) Skadden podcast explores AI’s role in fair lending and consumer protection, highlighting regulatory enforcement, transparency challenges, and state-level AI laws [Skadden].

Jobs

Spotlight of the week:

Other jobs:

• AVP, Revenue Optimization & Personalization (Axos Bank)

• Digital Acquisition Manager – SMB (Piermont Bank)

• Director of Digital Strategy (First Horizon Bank)

• Product Marketing Manager, Member Engagement (Chime)

• Director of Growth Marketing (Paid Media) (Chime)

• Head of Experiential Marketing (Square)

• Growth Marketing Specialist (Fig)

• Associate Director, Digital Activation (Invesco US)

• VP of Growth (Relay)

• Manager, Demand Generation (Relay)

• New Business, Vertical Solutions (Column)

• Director, Digital Wallet Program (Coinstar)

• Director of Product Marketing (Stampli)

• Director of Product Marketing (Pontera)

• Vice President of Marketing (Unusual Ventures)

• Industry Marketing Lead, Americas (Stripe)

• Senior Director of Demand Generation (Morningstar)

• Director, Product Marketing (Pagaya)

• VP Lifecycle Marketing (JG Wentworth)

Events

Spotlight of the week:

(12/3) Intuit CFO Sandeep Aujla to Present at the UBS Global Technology Conference. The fireside chat starts at 9:55 a.m. PT and streams live on Intuit’s investor relations site. A replay will be up 24 hours later. [Intuit]

(12/4) Intuit Executive Mark Notarainni to Present at the Wells Fargo 8th Annual TMT Summit. The fireside chat starts at 3:00 p.m. PT and streams live on Intuit’s investor relations site. A replay will be up 24 hours later. [Intuit]

Quick note from our sponsors

NMG and Fiat Growth are excited to sponsor this newsletter, delivering fintech marketers actionable insights and strategies to drive efficient, cost-effective growth. We’re committed to supporting companies as they navigate data-backed decision-making, strategic partnerships, and marketplace success.