Your choice of business bank isn't just about convenience. It's about survival.
Over the past three years, we've watched tech companies—some of the most finance-savvy businesses around—completely reshape where they bank. The shifts reveal hard truths about what really matters when your business depends on seamless cash flow.
Here's what the numbers tell us, and what it means for your business.
Three years ago, Mercury held 33 percent of tech companies' business. Today? They've captured 49 percent of the startup market. Mercury didn't win by accident. They built their entire platform around what growing businesses actually need: fast onboarding, real-time expense tracking, and banking that doesn't require a phone call to get answers.
What this means for you: When nearly half of tech companies choose the same bank, pay attention. These aren't companies known for making sentimental decisions about vendors.
While everyone focused on fintech darlings, Chase quietly became the second most popular choice for tech companies. They went from 15 percent market share to 34 percent.
That's a 116 percent increase.
Chase succeeded by combining the reliability of a traditional bank with modern business features that actually work. No startup CEO wants to explain to investors why payroll bounced because their trendy fintech bank had "technical difficulties."
What this means for you: Sometimes boring wins. Chase offers the stability of a century-old institution with the digital features your business needs today.
Silicon Valley Bank was the darling of tech companies for decades. At their peak in early 2023, they held 31 percent of our customers' business.
Today? They're down to 19 percent and falling.
The SVB collapse wasn't just a cautionary tale about bank management. It exposed the danger of putting all your financial eggs in one basket—especially when that basket serves primarily one industry.
What this means for you: Diversification isn't just for investment portfolios. Consider splitting your business banking across multiple institutions, especially if you're in a volatile industry.
The banking crisis wasn't just about Silicon Valley Bank. First Republic Bank fell from 14 percent market share to just 3 percent—a catastrophic 75 percent decline that wiped out a decade of relationship building.
Meanwhile, the mega-banks consolidated power. Chase Bank nearly doubled its market share. Bank of America grew steadily. Only Wells Fargo stumbled slightly, and even then just barely.
The pattern is clear: size and diversification matter more than relationships when crisis hits.
What this means for you: Regional banks might offer personal service, but they often lack the capital reserves and diversified business lines to weather economic storms. Your business needs banks that will be there next year.
Mercury, Chase, and Brex together hold 112 percent of tech companies' banking relationships. (Yes, that adds up to more than 100 percent—many companies bank with multiple institutions.)
This level of concentration means these three banks set the standard for business banking features, pricing, and service.
What this means for you: These banks have the most pressure to innovate and the most resources to solve problems. But concentration also means less competition on pricing and terms.
The banking landscape shifted dramatically over three years. Here's how to position your business for the next three:
Choose banks that understand your business model. Mercury dominates tech banking because they built specifically for companies with complex expense needs and rapid growth. Find banks that understand your industry's cash flow patterns.
Don't bank with just one institution. Keep your primary operating account with a stable, well-capitalized bank. Use specialized fintechs for specific needs like international payments or expense management.
Evaluate your bank annually. Banking relationships shouldn't be set-and-forget. The data shows companies regularly switch banks when their needs evolve.
Look beyond the marketing. Chase didn't win tech companies with flashy ads. They won with reliable service, competitive rates, and features that actually work when you need them.
Your business banking choice compounds over time. Companies that picked Mercury three years ago saved thousands of hours on expense management. Companies that stuck with unstable institutions faced frozen accounts and emergency cash flow problems.
The numbers don't lie: smart businesses choose banks that help them grow, not just hold their money.
Ready to evaluate your business banking setup? Review your current accounts against what growing companies actually use. Your future self will thank you for the time invested today.
This analysis is based on banking data from 1,956 tech companies over 36 months. We help businesses make smarter financial decisions by turning clean data into actionable insights.