As the impact of the pandemic reverberates throughout the global economy, tech giants in Silicon Valley are preparing for the future. However, the departure of one of the Valley’s most iconic companies, Silicon Valley Bank, is a sign of the times and serves to remind us of the ongoing struggle many businesses remain in.
1. Divining the Demise of Silicon Valley Bank
As the first step to unraveling the mystery of Silicon Valley Bank’s decline, let’s examine why this particular big technology banking institution met its demise.
- The changing landscape of tech banking meant Silicon Valley Bank had to adapt in order to survive.
- The sluggish stock market performance of late 2019 presented the Bank with a less favorable budget to work with.
- Additionally, the Bank’s lack of innovative banking technology left them unable to keep up with the myriad of digital banking competitors.
The final straw seemed to be Silicon Valley Bank’s inability to capitalize on other profitable ventures. The Bank was slow to expand their physical presence beyond the U.S. and didn’t take advantage of venture capital opportunities in emerging markets. Furthermore, their limited client base ultimately led to diminishing returns. Therefore, with these setbacks, the Bank fell behind in the banking race and ultimately failed to stay ahead of the competition.
2. The Painful Impetus of Change
Change can often feel painful and laborious, yet it is unavoidable. Transitions are almost always preceded by feelings of unreadiness and discomfort. Every growth and evolution in life is preceded by some disruption.
Take risks and turn the pain into an impetus. Instead of allowing the uncomfortable feelings to hold you back, use them as motivation. Refuse to shrink away from the things that cause distress and focus on what is to gain from the experience. Believe that everything that is happening is beneficial and that the results will surpass any discomfort you may feel. Make the difficult changes and create a brand new foundation. It may be daunting, it will probably be uncertain, but it is almost always necessary for growth.
- Face your fears: Allow yourself to process the worry and uncertainty in order to move on.
- View change as a challenge: Don’t focus on the fear of change, instead, reflect on what you have to gain.
3. A New Dawn of Financial Challenges
In the past decade, organizations across the globe have faced steep financial challenges. From the economic crisis of 2008 to extreme market volatility, these challenges have put organizations to the ultimate test. But now, organizations have entered a new dawn, one full of cutting-edge financial risks that could very well redefine the meaning of the “bottom line.”
Organizations are increasingly facing modern financial risks such as:
- Cybercrime, which can result in financial losses or even weak customer trust
- Cash flow disruptions due to operational disruptions or rapidly-changing market demand
- Increasing globalization, which can lead to complex regional, cultural, and political risks
- Volatile financial markets which can lead to extreme losses and stress on the financial performance of an organization
These type of risks are pushing organizations to their limits. To stay in control, they must stay ahead of the curve and proactively prepare for whatever the future may bring. Moving forward, organizations must evaluate the potential financial risks that arise from emerging trends and plan to mitigate their risks accordingly- all to ensure their long-term success.
4. Seeking a Brighter Tomorrow
Life brings obstacles that can seem insurmountable at times. It’s part of the human experience to stumble and face difficulties, but it’s important to remember that it’s also part of the human experience to push through, and achieve a brighter tomorrow. We all walk our own journeys, but it’s best to never walk alone.
To seek a brighter tomorrow, it’s necessary to prioritize our dreams, passions, and goals. Doing what we love and pushing towards what we have always wanted can seem like a difficult task, but once we take the leap and step out of our comfort zone, the world can be an open book. Working towards our aspirations requires a strong sense of self-belief, hard work, and resilience. Here are a few tips to get you ready to move towards a brighter tomorrow:
- Know your why – Spend some time reflecting on what it is that you want to achieve and why it’s important for you.
- Build your community – Those around you can help you stay accountable and motivated. Seek out a supportive team and get ready to take on any challenge that stands in your way.
- Make a plan and get started – No plan is ever perfect, but it’s important to have a roadmap to carry out your objectives. Start small, don’t be afraid to take risks, and stay focused to make progress.
Silicon Valley Bank had long been a reliable source of assistance and resources for those in the market. Now, the end of the bank is yet another sign of harsh times ahead. Despite the bleak outlook, one can hope that the lessons and innovations of Silicon Valley Bank will live on, ensuring that the pain and turmoil of this shift in the markets is as temporary as it can be.