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Fintech company Brex’s co-CEO, Henrique Dubugras, has stated that the next couple of weeks will be crucial for the industry.

Dubugras was speaking about the recent SVB failure and its potential long-term impact.

He believes that founders are unsure about what to do and whom to trust, and the next few weeks will inform them about how to manage their money.

Dubugras thinks that moving money to big banks is not the solution, as they may not provide excellent service due to their size and market position.

Instead, customers should know the difference between bank and brokerage accounts.

Deposits in bank accounts give the bank the right to lend and buy securities, while brokerage accounts allow the customer to choose the risk they want to take.

Dubugras suggests that people need to be educated about the distinction between bank and brokerage accounts.

Dubugras also spoke about spreading operating funds across multiple banks, which some people suggest to protect assets.

However, it may not be practical or reasonable to do so, and an alternative way of protecting assets is needed.

Brex offers up to 2.25 million in FDIC insurance by placing money into increments of 250,000 across nine banks automatically.

They are working to expand this to as many banks as possible to distribute FDIC funds.

Dubugras believes that education on what customers are doing with their money is crucial.

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