Can Community Banks Survive the Next SVB? | ModernFi CEO Paolo Bertolotti and Former Comptroller Gene Ludwig

This podcast episode features David Haber from a16z interviewing Gene Ludwig, former U.S. Comptroller of the Currency, and Paolo Bertolotti, CEO of ModernFi, about the challenges and opportunities within the American banking system. The discussion begins with the SVB crisis, highlighting the role of technology in exacerbating the bank run and the importance of deposit insurance. They explore the fragmented nature of the U.S. banking system, emphasizing the vital role community and regional banks play in supporting small businesses and innovation. ModernFi's solution, a deposit network that allows institutions to provide increased deposit insurance to their customers, is presented as a way to strengthen these banks and prevent future crises. The conversation also covers the technical challenges of building such a network and the innovative approach of creating a bank-owned consortium to ensure alignment and drive adoption.