Blog article
See all stories »

SVB’s Collapse Opens Window of Opportunity for Business-Banking BaaS

As the dust begins to settle after SVB's collapse, a picture emerges showing that venture-backed startups have a clear appetite for BaaS-driven fintechs as an alternative for deposits.

I would like to preface this article with the observation that the collapse of Silicon Valley Bank (SVB) was a significant loss to the entire fintech ecosystem. SVB played a critical role in providing financial support to many startups. It helped navigate the path to scaling many successful businesses, and its expertise and guidance were influential in shaping the fintech industry playing field.

Indeed, back in 2016, SVB was amongst the first to support Mbanq’s ideas. SVB was the first bank to establish a business relationship with Mbanq, and this cooperation later grew to encompass the USA, the UK and the rest of the world. SVB was also Mbanq’s partner bank for a portion of Mbanq’s Banking-as-a-Service (BaaS) business. Therefore, both from a personal and professional perspective, SVB will be sorely missed.

Now, as the waters clear and the ramifications become known, a recalibration of sorts has become visible following the significant upheaval. For some BaaS-driven fintechs such as Mercury, Brex and Cheqly, the collapse of SVB created new opportunities and spurred growth.

Mercury, Brex and Cheqly offer banking services to small businesses. Following the collapse of SVB, they were quick to seize the opportunity to acquire over 30% of the venture-backed deposits that were previously held by SVB. The unprecedented bank run on SVB deposits caused a surge in demand for alternative banking options, and Mercury, Brex and Cheqly were well-positioned to step in and fill the void left by SVB.

With the sudden closure of SVB, many startups were left without a reliable banking partner which they needed to grow and thrive. While the collapse of a key banking partner can be disruptive, it also presents an opportunity for startups to reassess their financial strategies and explore new options. The collapse of SVB highlighted the importance of having a diverse range of banking partners and the need for startups to have contingency plans. And BaaS-driven fintechs were winners of a significant portion of deposit transfers.

As the fintech industry continues to evolve and adapt, companies that can innovate and respond quickly to challenges will be the ones that thrive. The success of Mercury, Brex and Cheqly following the collapse of SVB, is just one example of how the fintech community can rise to the occasion and transform a challenge into an opportunity for positive change.


Comments: (1)

Scott Mills
Scott Mills - William Mills Agency - Atlanta 25 April, 2023, 16:50Be the first to give this comment the thumbs up 0 likes

This is the first piece I've read that both appreciates the role of SVB (and its loss) along with providing some companies to follow. The velocity of commercial deposits is something I never dreamed would be an issue, but here we are. 

Vladimir Lounegov

Vladimir Lounegov



Member since

03 Apr 2023


Naples, Florida

Blog posts


More from Vladimir

This post is from a series of posts in the group:


Banks nowadays are in stiff competition for human resources with fintech. The financial technology sector often offers higher pay. Still, the prospects of many such start-ups are difficult to forecast – they are as likely to occupy a solid niche as they are to go bust. Stable companies in Latvia are only a handful. Primarily, fintech players active in Latvia are headquartered in foreign countries – the United Kingdom, to name one – despite maintaining offices in Riga and employing staff in Latvia

See all

Now hiring