Customers have opened 4,000 accounts with finance and technology company Brex since the collapse of Silicon Valley Bank on March 10 as fintechs look to banking providers that understand startups and innovation.

The San Francisco-based Brex serves as a provider for Doordash, Airbnb, YCombinator and digital payment and reward fintech Localight, according to its website.

Localight banks with Brex because of its breadth of deposit spread across multiple institutions — which allowed the fintech to remain unaffected by the fall of SVB, Localight Chief Executive DW Ferrell told Bank Automation News. Since SVB failed, Brex has increased its spread across four institutions to nine, to up its insurance per depositor.

Now, Brex offers customers up to $6 million in Federal Deposit Insurance Corporation insurance, a Brex spokesperson told BAN.

Fintechs look to regional banks

Although Localight was practicing a multibank strategy before the fall of SVB, many fintechs were not, Ferrell said, noting that fintechs, specifically SVB clients, found themselves looking for new bank providers — with multiple deposit options.

As fintechs looked for new banks the questions has been: Will SVB clients want to move to one of the big four?

The answer, so far, has been no, Ferrell said. Fintechs want to move to a bank that supports innovation — specifically keeping their money at regional banks, Ravi Ahmad, economist at Localight, told BAN. “Brex understands the startup world … which is why [fintechs] don’t want to go to the big banks.”