Dive Brief:

• Despite calls for firms to spread risk exposure after the Silicon Valley Bank failure, longer-term bank deposit safety still remains a top concern for finance executives, with 74% ranking it among their top three priorities: ahead of inflation (70%) and cyber risk (65%), according to a survey of 265 CFOs and finance leaders surveyed in December by Ampersand, a Waukesha, Wisconsin-based financial services firm. 
• Nearly three years after the spate of regional bank failures raised awareness of the need to close risk gaps, vulnerabilities remain, according to the survey. Three-quarters of respondents reported they are aware of recent U.S. bank failures, but CFOs said on average that their businesses could only operate for less than three months if their primary bank failed and deposits were inaccessible, according to the findings.  
• “Our survey reveals a disconnect between how safe businesses feel their cash is and how protected they actually are,”  Ampersand CEO Kelly Brown said in a statement emailed to CFO Dive. “CFOs are balancing a lot — operations, payroll, growth — while also safeguarding significant cash balances. Building real cash confidence means understanding protection limits, diversifying risk, and treating access to deposits as a core business priority, not an afterthought.”

Dive Insight:

The 2023 collapse of Santa Clara, California-based Silicon Valley Bank rattled financial leaders, leaving many suddenly juggling how to make payroll and pay suppliers daily. Longer term, many also sought to spread their banking business across different institutions to allow for coverage should one of them fail. 

The survey did find some progress. For example, among companies with balances over $250,000, “a substantial portion are already diversifying accounts” or actively considering other strategies to maximize Federal Deposit insurance Corp. coverage. Many respondents cited mid-sized financial institutions as being “best equipped to deliver attractive rates” while over half (54%) offered superior rates compared to large national banks. 

Still, a large majority (86%) of companies surveyed hold balances exceeding the $250,000 standard FDIC insurance limit for deposits. 

“These findings illuminate clear opportunities for greater cash confidence through education and proactive steps,” the report released Monday states. “With so many businesses holding large uninsured balances and limited runway in a failure scenario, understanding FDIC limits, diversification options, and safety signals is essential.”