Onshore push impacting smaller digital banking players

Been following the narrative around increased scrutiny on corporate accounts, especially for non-resident entities, across various jurisdictions. It feels like the larger, established offshore banks are weathering the storm okay, but I'm seeing more pressure on some of the smaller digital-first banks that sprung up over the last 5-7 years. My gut says there's a 60-70% chance we'll see at least one or two of these smaller, less capitalized players either fold or get acquired by a larger entity by the end of Q3 this year, specifically those operating primarily under an EMI license. The cost of compliance, the KYC burden, and the increasing demand for 'substance' are just squeezing their margins too hard. It's a tough environment for anyone not having deep pockets to lean on right now.