Diversify your financial stack to reduce reliance on a single bank

Author: Tilly Michell

The recent collapse of Silicon Valley Bank (SVB) and Signature Bank in the US has forced the issue of risk exposure to the forefront of business owners’ minds.

SVB is the second largest bank to fail in US history. Its collapse is a reminder of the risk of relying on a single bank. Particularly if your business holds cash reserves above the £85,000 insurance limit offered by the Financial Services Compensation Scheme (FSCS). The lesson is clear: businesses must diversify their cash pools to reduce their risk exposure.