It’s not just that a firm could diversity but the network of firms around your firm…. E.g. if you weren’t think “I am in Silicon Valley I have to bank at SVB” and you didn’t think “I am a startup so I need to have my payroll processed by a startup… that also banks as SVB” your exposure is reduced.
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Is that practical though? Is that standard practice?
It’s not just that a firm could diversity but the network of firms around your firm…. E.g. if you weren’t think “I am in Silicon Valley I have to bank at SVB” and you didn’t think “I am a startup so I need to have my payroll processed by a startup… that also banks as SVB” your exposure is reduced.