Fintechs are looking to legacy banks with strong portfolios to provide seamless onboarding and digital capabilities following the regional banking crisis last year. 

One year after the collapse of Silicon Valley, Signature and First Republic banks, clients are still clinging to “too big to fail” institutions, Ashish Garg, co-founder and chief executive of digital communications fintech Eltropy, told Bank Automation News.

“We moved our account to JPMorgan because that bank is too big to fail, and even if the bank is having a run, we knew that the regulators would step in,” Garg said. 

Eltropy did not disclose which bank it was with before making the move to $3.4 trillion JPMorgan. 

READ MORE: Not only big banks have seen increased deposits since the SVB collapse. Digital banks also saw an increase after the SVB collapse, as BAN previously reported.   

Law Helie, general manager of consumer banking at tech provider nCino, echoed Garg, noting that megabanks with strong tech stacks like JPMorgan saw assets come their way after the SVB collapse. 

In the first quarter of 2023, JPMorgan grew its deposits by $37 billion to $2.34 trillion compared with fourth-quarter 2022, according to the bank’s earnings supplements.  

In Q4 2023, the bank’s deposits continued to grow, up 3% year over year and up 1% sequentially to $2.4 trillion, according to the bank’s Q4 2023 earnings supplement.  

The megabanks have “sophisticated platform[s] which can onboard a client within minutes,” Helie said. If onboarding takes too long, clients go elsewhere. 

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