Driving home from summer camp yesterday I passed a woman dangling over a non-pedestrian bridge. She vanished by the time I circled back. The State Troopers were not optimistic given the length of the span and the short time it took me to return.
I took advantage of the Juneteenth holiday to run along the river past the spot. My mind wandered to the meaning of Juneteenth.
It's hard to wrap my head around just how horrible the human race can be. The barbaric practice of slavery couldn't have lasted for 250 years if people and companies weren't complicit in supporting it, even if they didn't own slaves.
I don't think companies should participate in politics. I think it is up to the company whether they take stances on social issues. But... every company needs a moral compass, especially in financial services. It is non-negotiable in our business.
The current Synapse debacle isn't just a legal issue, it is a moral one. Synapse and it's CEO stranded thousands of customers' money when it self-destructed. Read Jason Mikula's reporting to hear the personal impact. The self sabotage at the end feels like an attempt to further obfuscate the ability to unwind the damage done. It isn't just Synapse at fault. Yotta, the largest impacted program, throws up its arms and says "there's nothing we could do." They should have had a plan in place. It wasn't like this happened overnight; this played out like Austin Powers on a steam roller. Evolve and Lineage had a regulatory and moral obligation to ensure the safety of the funds entrusted to them. The investors and board members backing the programs, the startups, and the banks all had a duty of care.
From usurious rates to untrue claims, financial services, and by extension fintech, requires a moral compass. It doesn't matter that a claim or a rate passes regulatory muster. These are people's lives and livelihoods. It may not trigger a UDAAP, but is the claim morally right? Would you be happy if your parents or children signed up? Are you misleading what the rate, deposit or repayment, is with legalese?
Back to the woman on the bridge... I can't help but think "what if just one person had intervened" before I was speeding by at 65mph. I think about people like William Wilberforce that led the abolition movement in England (Amazing Grace is a must see movie). In our industry, we need to intervene when we see things being done wrong instead of waiting for regulators reaction (over reaction). This isn't being woke or anti-capitalism. This is about taking care of people. From the way we treat the barista to the products we offer, there is a moral imperative that we've gotten lax on in the name of capitalism and social media.
Financial Services needs to step up and police its own. This isn't the regulators job unless we leave it undone.
Also, be kind. You don't know what that other person is carrying. You might be the gift that turns around someone's day or keeps someone from climbing onto a bridge.