Financial institutions are working to fill the gaps brought to light by the failure of Silicon Valley Bank, bringing to market new deposit diversification solutions, treasury management tools and customer experience offerings.

But existing solutions are also finding new demand, Brex Chief Financial and Chief Operating Officer Michael Tannenbaum told Bank Automation News. For example, Brex Cash, which brokers out deposits into a suite of FDIC-insured banks, first launched in 2019, but has recently gained popularity as account diversification takes on new importance.

“The product really met the moment,” Tannenbaum said.

Although Brex Cash is gaining traction, the digital bank is also working on innovations following the SVB collapse as market demands shift, Tannenbaum said. “Where our innovation is going is more on the operations side of the account, where you need more bill-pay and advanced software that ties into vendor management.”

As Brex works on new developments, other innovators have already rolled out solutions to meet post-SVB market needs, including:

Arc Gold CX

San Francisco-based digital bank Arc launched Arc Gold, its white-glove customer experience (CX) offering, in March as startups demanded direct access to customer service representatives following the collapse of SVB, Arc co-founder and Chief Executive Don Muir told BAN.

“We launched Arc Gold to help replicate that traditional banking experience, with a modern, software-driven user experience that bank clients deserve,” Muir said.

The CX solution gives members access to a dedicated relationship manager from the bank team, he said. The dedicated relationship manager, who is on call six days a week, can answer questions, look at a client’s portal, analyze financials and help make banking decisions.

“At Arc, we’re pairing a scalable software solution where we can serve thousands of companies at a relatively low marginal cost; we’re pairing that with a white-glove customer service that you would expect at a traditional bank,” Muir said.

Arc Gold was originally planned to roll out in Q2 2023, but it was pulled forward “to address the enormous increase in organic demand that we experience at our business,” Muir said.

Arc clients can still use the bank’s online chat assistance for questions along with dedicated relationship managers.

Ledge multibank treasury management solution

Finance operations platform Ledge launched its multibank treasury management solution to help finance teams manage their cash positions across multiple bank accounts, as account diversification demand increased over the past month, Tal Kirschenbaum, founder of Ledge, told BAN.

“With this solution, banks can get an adequate view of their balances,” he said. “This was something we were planning on doing in a few months, but given the events that happened over the past few weeks, we decided that this was the time.”

To use the solution, clients connect their bank accounts to Ledge via a banking data aggregator, such as Plaid, he said. “Once we have those bank accounts connected, that’s it. … It takes a couple of minutes.”

The multibank strategy is becoming common, but the management of the accounts is a pain point, he said. “We decided to hit the afterburner and very quickly develop a solution that helps companies manage that complexity.”

Envestnet’s Bank Deposit Index

Wealth tech giant Envestnet also launched a product on March 20 in direct response to SVB collapse, to help other financial institutions avoid the same catastrophe.

Envestnet’s Bank Deposit Index allows bank treasury teams to track the inflow and outflow of deposits, Farouk Ferchichi, president of Envestnet data and analytics, previously told BAN.

The tool is designed to deliver insights directly to bank treasury executives through Envestnet’s API integrations, Ferchichi said. Envestnet plans to rollout added functionality to the tool including bank-specific alert capabilities.