We will be live-updating the Silicon Valley Bank crisis story as new developments emerge through the weekend.
This week we sat down with Michele to talk about the outlook for financial institutions an innovation in the wake of the SVB crisis.
Silicon Valley Bank has a joint venture partnership with Shanghai Development Bank Co. Ltd; the partnership led the bank to open its first Chinese branch in Shanghai in 2012 and the firm has now announced their second location in Beijing; the banking branch in Beijing has 14 employees and will offer services for companies in technology, private equity and venture capital which are a key focus for Silicon Valley Bank globally. Source
Could AI have prevented the SVB crisis? Maybe not completely, but consumer sentiment analysis could have dramatically reduced its impact.
Cambridge Bancorp in Massachusetts formed an innovation group in 2016 and is now positioned to compete against bigger banks; head of the innovation Group Scott Chamberlin tells American Banker, “We spent a couple years proving … we could win business externally and, more importantly, internally from a credit standpoint. We’ve proven that out. This is year we start to add scale.”; the bank is looking to be an alternative to the likes of Silicon Valley Bank and Square 1; they see a differentiating characteristic being their local reputation and that they are in it for the long haul. Source.
Silicon Valley Bank is still open for business for fintech companies. In many ways, even though it is now part of First Citizens Bank, it is very similar to what it was before, at least from a fintech perspective.
Books will be written and movies will be made about the last seven days as it was the most dramatic week in finance since the financial crisis of 2008.
Welcome back to the Fintech Blueprint / Rebank podcast series hosted by Will Beeson and Lex Sokolin. In this episode, we talk through a few recent events that are indicative of the Fintech world right now. Brex raised an additional $150 million at a slightly improved valuation vs. its last round just as Monzo is reportedly looking at a 40% down round. Why? Shopify launched bank accounts for its merchants and announced the Shop app, basically an Amazon competitor plus Klarna, just as it worked with Facebook to support the launch of Facebook Shops and joined the Libra Association. Lots going on. Lastly, we discuss why Goldman’s M&A activity over the past couple years leads to the natural conclusion that they should buy Schwab.
This panel of experts will examine where we are headed and how a similar event can be avoided in the future.
Arc were one of the self described first responders of the SVB crisis. They have now launched gold to help startups easily diversify risk.