Fintech giants in the United States and some parts of Europe can no longer escape having deals with this one company that has become an indispensable banking partner. These companies have been held captive by Silicon Valley Bank due to its know-how of the banking industry and consistent innovation. We can not talk about the Fintech50 list without mentioning this company.
Beyond banking, Silicon Valley has contributed tremendously to other areas. The bank has been instrumental in private equity, venture capital, and life sciences. This uncommon wealth of understanding industry dynamics is why Silicon Valley has remained relevant for many years. We have made it our duty to explain the importance of Silicon Valley Bank to the global fintech ecosystem. Read this Fintech50 article to find out.
Why Silicon Valley Bank?
Unlike companies named in the Fintech50 list, Silicon Valley Bank is not a new startup. Yes, the company has been in existence for over 35 good years. So, you’re wondering how it is still in the fintech conversation when the industry boom has not been that long. We will tell you.
Let’s start with this undisputed fact. Fintech will not be so efficient without the backing of an innovative bank. This is why Silicon Valley has become the go-to banking partner for over 60% of Fintech50 companies listed by Forbes. Silicon Valley Bank provides the platform for fintech to deliver on payments, lending, and banking effectively.
So, if you have been wondering how companies like Shopify, Payoneer, and Upstart have been unrivalled in these aspects, it’s because Silicon Valley Bank supports them with financial innovation. Besides these sections, there are other parts where the company is also vital to fintech’s growth. Let’s look at some of them.
Silicon Valley’s Superb Solutions for Fintech
Many financial institutions only provide the banking protocol for most fintech. However, Silicon Valley Bank goes the extra mile for these technological firms. Silicon Valley Bank ensures these companies get every infrastructure they need to operate and serve their users. With these provisions, many other fintech companies continue to look towards having a long-lasting relationship with Silicon Valley Bank (SVB). The additional infrastructure provided by the SVB financial group include:
- Liquidity management: Silicon Valley Bank has reliable financial experts on board. These experts help fintech organisations with strategies on asset management, investments, and a practical approach to achieving business objectives and matters that affects clients.
- Payments automation: While many top fintech has the infrastructure to automate payments, Silicon Valley Bank’s backing also helps to keep the process smooth and sustainable.
- Bank authentication: The company provides a tool for seamless bank authentication. With the “ Plaid” platform, fintech customers can easily authenticate their bank account information and make transactions.
- Venture funding: Venture funding is a big part of the fintech ecosystem. From raising seed funds to investor partnership, Silicon Valley Bank plays a vital role in that regard. One of the reasons that many fintech firms on the Forbes list have achieved extraordinarily is because SVB played instrumental roles in raising Venture Capital Fund globally.
- Full-scale compliance framework and risk assessment: Risk assessment and comprehensive business compliance is key to keeping a fintech company in business. Silicon Valley Bank ensures that these businesses follow the review, testing, and implementation process. To ensure that these companies do not breach the regulations, Silicon Valley continuous monitoring and surveillance.
Final Thoughts
If there is one thing that our Fintech50 team has found out in this article, it is that collaboration will always win over competition. Imagine a company like Silicon Valley Bank, over three decades old, partnering with relatively new organisations and thriving. We believe that more financial institution engagement in this kind of activity will drive the relevance of the banking industry for years to come.
Disclaimer
This article is not written so you can invest in Silicon Valley Bank. At Fintech50, we only aim to inform you about the latest updates around technology and the cryptocurrency space. If you intend to invest, we suggest that you seek the services of a financial advisor
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