Raising capital is a crucial step for any startup trying to build its way up the fintech ladder.

However, when it comes to VC funding, the actual capital is the “least important part of the transaction,” according to Bruce Wallace, chief digital officer at Silicon Valley Bank.

“I think there is a real misunderstanding sometimes of what VCs do for startups,” he said at Bank Innovation 2017 in San Jose, which took place in March. “I think everyone’s focused on the seed part of VC, but what they [startups] really need is somebody that will have insights and connections to help them build their company. It can’t just be ‘we can be your first customer, or we can provide you with an access to our platform,’ because, frankly, that’s not a good selling point.”

According to Wallace, banks and FIs need to find a differentiating value proposition to offer to startups. “Certainly, capital is a part of the deal, but it’s much more about how we can help you in a multifunctional way,” he added.

Watch Wallace, as well as Arvind Purushotham of Citi Ventures, discuss the topic at Bank Innovation 2017: