TLDR: Two Fintechs Thrive After SVB Crisis
Key Points:
- Mercuty and Moneylion benefited from the collapse of Silicon Valley Bank
- Many fintechs are now rethinking their banking relationships to avoid a single point of failure
In March 2023, the fintech world thought it was ending when Silicon Valley Bank faced a crisis. However, fintech companies like Mercury and MoneyLion not only survived but thrived in the aftermath. Mercury launched Mercury Vault, offering FDIC insurance and gained 8,700 new clients in just five days. MoneyLion, which had a deep relationship with SVB, updated its operations to account for bank failure and is more resilient today.
The collapse of SVB caused disruption in the venture debt space, leading fintechs to rethink their banking relationships. The importance of avoiding a single point of failure became evident, and many companies, like Mercury and MoneyLion, are now stronger for it.
Overall, the SVB crisis had a lasting impact on fintech companies, leading to increased resilience and innovative products in the industry.