The Banking-as-a-Service (BaaS) sector is currently facing turbulence, with Synapse declaring bankruptcy and Evolve Bank and Trust facing regulatory issues. Despite these challenges, experts like Lydia Inboden from Ingo Payments believe BaaS has lasting potential. The industry's evolution is exposing vulnerabilities and prompting stricter regulatory frameworks. Inboden suggests a shift towards direct relationships between FinTechs and financial institutions for better oversight and compliance. This upheaval might affect open banking by making large banks wary of data-sharing with riskier FinTechs. Clear communication and transparency will be crucial for consumer trust moving forward.