Resilient payment systems are top of mind for many companies this week. As developments in the financial industry continue to evolve, our services remain unaffected by recent events; however, we recognize that many companies and individuals in the fintech ecosystem may be facing some difficulties.
We know it is a challenging time for those that banked with SVB or Signature Bank and ran their payroll, AR, and AP through them.
While our expansion into the U.S. continues, VoPay is primarily a Canadian-focused company, with most of our customers based in Canada, and our exposure to SVB was minimal.
That being said, if you have questions or concerns or have been impacted by SVB in Canada, VoPay can help. For organizations affected by these events and in need of payment support, we can help you get set up with one of our tier-one banking partners and facilitate express onboarding to ensure business continuity.
We know this has rattled many in the tech sector, and we have felt this in the fintech sector this past week.
As the 16th largest bank in the United States, SVB predominantly catered to startups and those in the tech industry. And now it makes the dubious distinction of becoming the largest U.S. bank failure since 2008. That in itself has put the financial sector on edge.
What is important to note is that many of the circumstances that led to the collapse of SVB don't apply in the Canadian banking sector. Canada has not seen a bank collapse in almost 27 years.
The downfall of SVB has been widely reported (see resources below). Still, one of the most comprehensive explanations we have found so far comes from Morning Brew co-host Alex Lieberman and Ampush founder Jesse Pujji. The list of resources below will be monitored, and any new information pertaining to the SVB situation's financial impact will be updated.
If you have any questions about our products or services, or if there is anything we can do to help you continue operating smoothly, please contact us here. We have a team of onboarding specialists ready to expeditiously assist you.
Financial History Magazine: A Financial History of Banking in the United States
National Post: The last time a bank went under in Canada was in 1996
VanTech Journal: Vancouver tech responds to Silicon Valley Bank collapse
The Finanser: Wassup Credit Suisse?