The collapse of Synapse is a pretty good example of why people don't -- and shouldn't -- put their money in the hands of a "fintech startup". And while not a "startup", the collapse of SVB certainly doesn't help due to its close association with SV and by extension FinTech startups.
I'm happy to use FinTech startup products for certain transactions -- CashApp and Wise are great and I might keep a small balance with them. But it takes decades of being around before people are willing to entrust serious deposits with them.
I think you’re reaching far to connect dots here. SVB collapse has nothing to do with innovations related to fintech. Their issue was more of the typical run on the bank situation than anything to do with innovation. So it was a failure of the traditional banking model, which any bank is susceptible to
I'm happy to use FinTech startup products for certain transactions -- CashApp and Wise are great and I might keep a small balance with them. But it takes decades of being around before people are willing to entrust serious deposits with them.