Silicon Valley Bank crumbles: Will your finances be affected?

You’ll have seen in the news that US tech specialist lender Silicon Valley Bank collapsed on Friday – the biggest failure of a US bank since the 2008 financial crisis. New York-based Signature Bank (which also specialised in the tech sector) has been taken over by US authorities. 

Bank shares around the world collapsed at the news, and in the UK, the government and the Bank of England brokered a deal for HSBC to take over the UK arm of SVB. We may notice a shift in lending culture over the next few months – possibly a reluctance among banks to open new accounts. 

With 2008 still fresh in many memories, we can expect a more cautious approach from some banks. However, in the UK, the Financial Services Compensation Scheme (FSCS) protects deposits in the event of a bank collapse: up to £85,000 for individual accounts and £170,000 for joint accounts. 

Regardless, remember that some banks are part of larger groups (which means your total deposits with the group may be larger than you think) and also that not all banks operating in the UK are regulated here, so they might not be covered.

If you have more than £85,000 across your bank deposits, now is perhaps the time to revisit your strategy for how you are investing and moving your money and check that the FSCS applies.

As all self-employed people know, preparing for financial year end (FYE) is important not only for your tax returns and staying compliant but also for analysing the health of your business. 

A recent survey by PolicyBee revealed that 40% of SMEs could be underinsured, and a whopping 44% are not insured at all. So take stock of how you are looking after your business. Don’t forget your household finances during your spring clean, especially considering the ever-rocketing cost of living. Look particularly at your mortgage this year. Are you paying the best rate possible? Shopping around for a better deal is even easier nowadays – a quick internet search can easily find mortgage calculators.

Tenity, the financial ecosystem that brings together investors, mentors, start-ups and corporations, has announced the latest edition of its international incubation programme, and we’re thrilled that SmartPurse is among the seven companies (from almost 300 applications) selected to take part.

During the next four months, SmartPurse and our fellow chosen start-ups will be supported in the evolution of our platform as we strive to democratise financial education among women worldwide. We’ll receive advice from global financial experts on refining our business ideas and future strategies.

Don't let money worries take over your life. Enhance your financial literacy to be better equipped to deal with unexpected situations.

With SmartPurse's online courses, workshops, and resources, you can gain the knowledge and confidence to tackle financial challenges head-on.

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