Greg Lopez makes a great point & this issue is not limited to personal accounts. Businesses need to be sure they understand how and if their deposits are protected. Last March when Silicon Valley Bank was taken over by the FDIC it was not clear if all the business depositors would be made whole - and that was with a bank with a direct relationship! Fintechs that offer savings-type deposit accounts for businesses will fall into the same category as consumer-focused ones. You need to know where your deposits are being kept if your account is with a non-bank provider. After the fallout in March of 2023 - Aaron Spool, CPA, CFA, MBA wrote a short piece on the lessons learned from the SVB failure. They are just as relevant today. Check it out here: https://lnkd.in/gmnEbxBJ #cfo #finance #accounting #banking
This seems important to share, as there is no shortage of neobanks in the market that target startups as customers: https://lnkd.in/eEr44FeF Essentially, it is “at your own risk” if you decide to keep your funds with a non-traditional bank that does not have a direct relationship with the FDIC.
