NASHVILLE, Tenn. — Arc Technologies charted a 12X increase in loan originations year over year in 2023, as it gained customers and deposits when businesses looked to pivot to new banking partners after the collapse of Silicon Valley Bank.
One year after the banking crisis, digital bank Arc is on track for “billions in deposits and hundreds of millions in loan volumes,” Don Muir, co-founder and chief executive said during the fireside chat at Bank Automation Summit U.S. 2024 today.
The banking crisis “was really the catalyst and the inflection point for our business and things haven’t slowed down since that,” Muir said.
Thousands of venture capital-backed companies use Arc as their banking partner for ACH wires, checking accounts, cash management, capital markets and investing solutions, he said.
Businesses that moved their accounts to legacy banking institutions after the SVB collapse are coming back to fintechs like Arc for a better digital experience and to better manage their assets, Muir said.
In the last two weeks, Arc has “added more assets to our platform than [in] the three months around the original date of the crisis,” Muir said. The bank has been able to retain the 150% increase in deposits it gained during the period after the SVB collapse, he said.
