Deposit Wars (from SVB to Public.com) - Alex Johnson | Fintech Takes

Past Performers - by InvestOrama

Alex Johnson is a fintech expert and the author of the popular newsletter and podcast Fintech Takes. He discusses with George Aliferis about Silicon Valley Bank, which collapsed after massive deposit outflows and what that means for deposits, savings and investment accounts.

LINKS

Alex’s Fintech Takes https://newsletter.fintechtakes.com/

Twitter https://twitter.com/AlexH_Johnson

QUOTES

“It's not really a bailout in the classic sense if you are just rescuing depositors who had nothing to do with the risks that SVB was taking. The management at SVB and the equity holders at SVB are not being rescued.”

“We don't carefully analyze the balance sheets of the banks that we work with. We just sort of expect that our money is going to stay in our account, sort of the opposite of the South Park example. So I don't think there was really  any moral hazard or risk  to rescuing depositors”

"In the absolute worst case where something goes wrong, you really wanna make sure that that company is keeping careful track so that if they were to go outta business, the partners they work with can sort of track down all the customers and make sure that they get their money back. So, I'm not as concerned in this particular case about FDIC insurance or SIPC, I think that's just a function of what kind of account it is under the surface. I think the bigger question is: how well set up are these FinTech companies to deal with the worst case scenario if they go out of business? And to be candid, a lot of less mature FinTech companies [can be a concern]

TIMESTAMP

00:00 Teaser

00:14 Intro

01:15 Alex's Background & The art of the newsletter

08:52 Southpark clip

09:48 Thoughts on Silicon Valley Bank

12:39 The right amount of insurance

16:09 A new service for neobanks?

17:14 Regressive progressive action and annoying VCs

21:33 Marvel Multiverse

22:22 The difference between banking, savings and investing

25:58 A new fintech hybrid model

27:03 The concerns about products looking safe

29:08 We forgot about bank failures

33:06 Reviewing Tellus notes

36:17 Reviewing Public's Treasury product

41:20 What if Public disappeared?

ABOUT THE PODCAST

Investorama is your guide to the future of investing, without the hype. In each episode, reformed investment banker and marketer, George Aliferis and his guests take a deep dive into a key topic that shapes our financial future.

Episode linksQuotesTime stampsAbout the Podcast
George is a reformed investment banker & marketer, who is now running Orama (podcast & video company), as well as its content arm Investorama, a podcast, YouTube channel and Newsletter.