SVB's programmatic payment systems are back online

[mattmarcus]

Latest up here: https://www.moderntreasury.com/svb-resource-center

Prior HN thread: https://news.ycombinator.com/item?id=35113496

[churchill]

I wonder why no one has said it yet but Mercury will come out the biggest winner from this mess. I can't estimate how the traffic from SVB > Mercury has been but I saw a post by Arc.tech saying they'd received hundreds of millions in deposits between 8 - 10 March.

Given Mercury was a more popular contender, I'm going to bet they had an inflow of basically double-digit billions.

[partiallypro]

But mass inflows of deposits are exactly how SVB got into the situation it's in now. You have to pay interest on the deposits. I'd much rather go to a truly "too big to fail" bank that can easily cover the deposit interest with a diverse line of business.

[tempsy]

Why would anyone go from midsized public bank to opaque neobank if they're now spooked about bank solvency issues?

The logical move is to go bigger eg JPM.

[chatmasta]

Brex and Gusto have been nagging us to setup a new bank account, but is this urgently necessary if SVB ACH is operating normally now? What are other people doing?

We'll obviously open a new account eventually but it doesn't seem urgent?

[richardlblair]

If I was a founder in the US right now I'd be opening at least 1 other bank account today and getting at least half my funds into that account. I would also never operate without at least 2 bank accounts.

Operating a business and having employees is a huge responsibility. If people are depending on you to manage the risk of your business so they can buy groceries it's important to take that as seriously as you can.

[londont]

Hi there, co-founder of Gusto here. To clarify — If you have not yet updated your bank account on file to another (see article), you will have to wire funds to Gusto in order to make payroll on time. Log in to the app, run payroll, and you’ll get a prompt with more details and the specific cut-off, but it’s usually 10am PST in the morning of payroll.

In terms, of getting a new bank set up, I’ve seen people open bank accounts same-day with Mercury (online) or Chase (walking into a branch). Wiring funds from SVB to one of these banks should take <24hr to complete.

But yes, you CAN initiate a wire transfer from SVB if you prefer to do that. Note that some SVB customers are seeing issues with the portal right now (probably given high traffic).

Hope this helps.

Oh, also we created this resource hub to help SVB customers with tips like the above: https://gusto.com/company-news/silicon-valley-bank-closure-r...

[rexreed]

Always have a backup. I have 2 corporate bank accounts (at least). Neither of them are SVB. Chase is solid. Avoid shiny objects. Startups have enough risk in their daily existence, the last thing you need is to introduce unnecessary risk. Be a revolutionary where it matters. Be boring, steady, and predictable everywhere else.

[HPMOR]

It is not urgent. All depositors assets, uninsured & insured, are being backstopped by the Treasury. No need to worry if your assets are being held by the FDIC receivership. Now, if your assets are at First Republic, there might be some concern, but I believe that the Treasury has sent a strong signal that depositors will be made whole.

[ladon86]

Not urgent. With the government guaranteeing deposits, SVB might be the safest bank in America (at least for this week).

I agree with others that you should be diversifying over the medium/long term, but I wouldn’t be racing to do that today.

[dougSF70]

I am going to run payroll from my personal checking account because gusto wants a different bank to SVB. I will then wire funds from SVB to my personal account. Then I will find a new business banking provider.

[jacooper]

So the new DIND bank created by the FDIC is an actual bank? Not just some kind of temporary org until everyone withdraws their money?

[epa]

No one cares about accounting controls until they need them. Let this be a lesson to all technical founders.

[TimTheTinker]

I think there are a lot of good reasons accountants, not MBAs, should be the ones running companies.

I work at a mid-size company (~550 employees) run by accountants. Their leadership and handling of the company is fantastic.

[ksajadi]

Their site is understandably having a rough day but you can get wires initiated.

[kxter]

No more small providers. Going with the big leagues going forward. Hello J.P. Morgan Chase.

[q1w2]

Until 15 years from now when everyone makes the same old choices again because they get a better deal at the new untested banks.