The May 2023 report analyzes the aftermath of the March 2023 regional banking crisis triggered by Silicon Valley Bank’s collapse, noting that while contagion appears contained, SMB banking, fintech vendors, and startups face lasting effects. Businesses are moving deposits to institutions perceived as more secure, creating cross-sell opportunities. Bank and fintech messaging has shifted toward stability and security, extending the fintech funding slowdown. BaaS demand is growing as firms reassess providers, making streamlined onboarding a competitive advantage. Despite funding challenges, fintech growth is expected to rebound, driven by AI and ESG solutions.

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