Grace Ashiru
According to TechCrunch, London-based fintech Verto gained a quarter of Silicon Valley Bank’s customers from Africa and the Middle East following the bankruptcy of the U.S. bank last month.
Verto offers a cross-border platform that helps startups, SMEs, and large corporations send, receive, and exchange money in more than 190 countries. It has over 3,000 clients, including MTN, Yoco, and Interswitch.
Verto’s data show that SVB had nearly 250 clients in both areas before it went out of business. So, it is working with over 60 companies and investment firms, including Jumia, Chipper Cash, and TapTap Send. Some of these companies are based in the U.S. and Europe.
Verto claims to have received more than $30 million in monthly deposit requests per company. However, the company says this money won’t just sit in their accounts since most of their new clients plan to use Verto for payroll and payouts.
Verto says that its transaction volume grew by 70% last year to more than $3 billion, and it expects this volume to triple in the next 12 months after it offers some new products and carries out some expansion plans.
Following the demise of SVB, African startups have been obliged to reconsider their banking alternatives to protect themselves from potential calamity.
TechCrunch talked to founders and investors who said they would keep their money in different bank accounts at large banks, which are considered safer. They also said they would use smaller fintech startups like Brex and Mercury, which also have more FDIC safety.
