In the wake of Silicon Valley Bank’s failure, several fintechs are looking at the effects of SVB’s collapse on the market, regardless of whether they had accounts with the bank. 

Money movement platform Astra did not have deposits with SVB, but Chief Executive Gil Akos believes that even companies that did not have exposure will experience short-term unpredictability in the market.

Fintechs will see normalcy return eventually, he told Bank Automation News. 

“Certainly it’s going to cause some short-term volatility and distraction for companies … because they have to deal with changing their corporate bank accounts over,” Akos said. “But I think, long term, there’s not any structural effect to any of our customers.” 

Meanwhile, bill-pay service Melio, a fintech that did have business with SVB, has not been overly affected or experienced disruptions within its payment service. The company has already has moved payment processing to other banks, co-founder and Chief Executive Matan Bar said in a statement. 

“As initial concerns about SVB rose, we took measures to route all new transactions via our other bank providers, including JPMorgan Chase, in order to ensure business continuity for our customers,” Bar said. “Melio is no longer using SVB to process payment transactions for our customers.” 

Experience played a role in which companies had exposure to SVB, said Tal Kirschenbaum, a former Melio employee and co-founder and Chief Executive of finance automation platform Ledge, which had an account with SVB.  

Fintechs with seasoned leadership, such as Melio, know that a multibank strategy is key, while fintechs that leaned on SVB as a service provider will feel the full effects of its collapse, he told BAN. 

“Because we use [multibank strategy] by integrating to multiple different banks, we’re able to solve that on a pretty massive scale in an automated fashion. But doing that manually is very, very challenging,” Kirschenbaum said.