CTalkHere's how Capstack aims to help American banks prevent another SVB collapse
CTalk
Here's how Capstack aims to help American banks prevent another SVB collapse
Tzvika Perelmuter, Co-Founder and CTO at Capstack, joined CTech to discuss how the company can help banks across the US.
Tzvika Perelmuter, Co-Founder and CTO at Capstack
(Photo: Go-Live)
“If we look at the US banking system…there are more than 5000 banks, most of them are small to mid-sized. Now, if we look at one small community bank in, let’s say, Texas, most of its customers will come from Texas because there it's in the vicinity of this branch,” explained Tzvika Perelmuter, Co-Founder and CTO at Capstack. “But this puts this bank in a very bad situation because if most of its customers come from the same geographical location, what happens if, for example, there is a natural disaster there?”
According to Perelmuter, those banks seek to diversify their assets like any other financial institution. Capstack helps them share loans, therefore getting opportunities that they normally wouldn't get. “We want to create a banking ecosystem significantly more diversified and stronger.”
The company was speaking to CTech at Calcalist and PoalimTech’s Roadshow+ event, where companies and VCs met to discuss potential opportunities. “The whole ecosystem becomes stronger because they diversify themselves and then the risk of a bank collapsing, which happened a year ago when Silicon Valley bank collapsed, becomes significantly lower.”
You can watch the entire exchange in the video above.
