EAST LANSING, Mich. — Reseda Group, a CUSO owned by MSU Federal Credit Union, has launched a new banking-as-a-service platform designed to connect financial institutions with fintech companies, with MSUFCU serving as the financial institution of record.
The new platform, called Bolt by Reseda Group, uses application programming interfaces, software development kits and other technology to help financial institutions and fintechs introduce financial products more quickly, according to Reseda Group.
TAPP Engine has signed on as Bolt’s first fintech partner and will use the platform to connect its cash management services directly with MSUFCU, Reseda said.
Under the arrangement, MSUFCU will serve as the financial institution of record, while TAPP will offer branded cash management experiences to its customers.
Platform Supports Accounts, Payments
Reseda said Bolt provides infrastructure supporting account opening, payments and money movement, debit card issuance, external account connectivity and embedded finance.
The platform is intended to allow fintech companies to develop and distribute financial products without becoming licensed financial institutions themselves, while giving financial institutions another way to establish fintech partnerships and expand their digital offerings.
“Speed to market is essential for both financial institutions and fintech innovators looking to meet evolving consumer expectations,” said Ben Maxim, chief operating officer at Reseda Group and chief technology officer at MSUFCU.
Maxim said Bolt is intended to create a bridge between fintech companies and regulated financial institutions while providing the APIs, integration options and banking infrastructure needed to launch new products.
The platform was developed by Reseda Group using experience gained through MSUFCU’s previous fintech development and deployment efforts, according to the company.
MSUFCU Handles Compliance Oversight
Reseda said the arrangement divides compliance and risk-management responsibilities among Bolt, approved vendors, fintech partners and MSUFCU.
Under the model, specific vendor partners support know-your-customer and know-your-business processes before accounts are opened.
Once accounts are established, MSUFCU provides ongoing account monitoring and compliance oversight and works to identify unusual account activity, according to Reseda.
The company said the structure is intended to allow fintechs to concentrate on developing their products and customer experiences while the regulated financial institution handles certain banking and compliance functions.
Bolt also provides onboarding and account-management capabilities, payments, debit card services and other digital banking functions through a single platform. Reseda said the technology uses APIs, SDKs, webhooks and other development tools intended to simplify integration.
TAPP Engine Becomes First Fintech Partner
TAPP Engine will use Bolt to connect its cash management technology directly to the financial institution holding its clients’ deposits.
Reseda said the arrangement will allow TAPP to provide a white-label private banking experience in which TAPP clients can offer their own branded cash management services while deposits are maintained at credit unions.
“Bolt gives TAPP Engine the critical infrastructure to connect our cash management tools directly to the institutions holding our clients’ deposits,” TAPP Engine President Will Dolan said.
Dolan said the BaaS platform allows TAPP to combine a branded cash management experience with deposits held at credit unions.
Designed to Support Additional Tech
Reseda said Bolt is designed to support additional fintech and financial institution partnerships as the platform grows.
The CUSO said the launch is part of its broader effort to combine MSUFCU’s operational and regulatory experience with fintech technology to develop new financial products and services.
