I’m thrilled to sit down with Priya Jaiswal, a distinguished expert in banking, business, and finance, whose deep knowledge of market analysis, portfolio management, and international business trends offers invaluable insights into the evolving financial landscape. Today, we’re diving into the exciting story of VALT Bank, a proposed fully digital bank targeting small to midsized businesses in the U.S., as it seeks a de novo charter. Our conversation explores the motivations behind launching a digital-first bank now, the specific needs of tech-savvy businesses, the innovative services VALT aims to provide, the strategic decisions shaping its model, and the experienced team driving this venture.
Can you walk us through what inspired the creation of VALT Bank at this particular moment in time?
The timing for VALT Bank feels right due to a confluence of factors in the banking sector. Digital transformation is no longer just a trend; it’s a necessity for businesses of all sizes. We saw a gap in the market where many small to midsized businesses are hungry for banking services that match their tech-driven operations. With advancements in fintech and a regulatory environment that’s showing renewed interest in de novo charters, it’s an opportune moment to build a bank that prioritizes digital efficiency and accessibility for these modern business owners.
How do you see the current banking landscape creating unique opportunities for a fully digital bank like VALT?
Traditional banks have been slow to adapt to the digital expectations of today’s businesses. Many still rely on outdated systems or branch-heavy models that don’t resonate with entrepreneurs who live and breathe technology. At the same time, the decline in new bank formations over the past decade—down to just a handful annually compared to hundreds in the 1980s—means there’s less competition in meeting niche needs. VALT can step in with a focused, agile approach, leveraging technology to offer seamless, integrated banking solutions while regulators are encouraging new charters.
When you describe VALT’s target as ‘digitally demanding small to midsized businesses,’ what kind of companies are you envisioning?
We’re talking about revenue-generating businesses that rely heavily on technology in their day-to-day operations. Think of a mid-sized e-commerce retailer managing inventory through cloud software, or a logistics firm using real-time tracking apps. These aren’t tech startups or crypto ventures; they’re traditional businesses—manufacturing, retail, services—that expect their bank to keep pace with their digital tools and provide the same level of sophistication in financial services.
How do the banking needs of these digitally savvy businesses differ from other small or midsized firms that might not be as tech-focused?
Digitally demanding businesses prioritize speed, integration, and automation. They want banking platforms that sync with their accounting software, offer real-time transaction data, and minimize manual processes. In contrast, less tech-focused firms might still be comfortable with in-person banking or simpler online tools. Our target clients are frustrated by clunky interfaces or delays in traditional banking—they need solutions that are as dynamic and connected as their operations.
Can you share an example of a typical business that VALT would aim to serve?
Absolutely. Picture a small wholesale distributor with about 50 employees, generating $5 million in annual revenue. They manage supplier payments, customer invoices, and payroll through various digital platforms. They’re looking for a bank where they can access credit lines quickly via an app, integrate treasury services with their existing software, and get real-time insights into cash flow—all without stepping into a branch. That’s the kind of client VALT is built for.
VALT plans to offer credit, deposit products, and treasury services. What will make these offerings unique for your target audience?
Our focus is on customization and digital integration. For credit, we’re designing products that assess a business’s needs using data from their digital operations, speeding up approvals. Deposits will come with tools for automated savings or cash allocation. And for treasury services, we’re prioritizing features like real-time payment processing and cash flow forecasting, all accessible through a user-friendly digital platform. It’s about making banking a seamless extension of how these businesses already operate.
You’ve made it clear that VALT won’t engage with digital assets or cryptocurrency. What drove that decision?
It’s primarily about focus and risk management. Our mission is to serve traditional businesses with straightforward, reliable banking, not to venture into the volatile and heavily regulated space of digital assets. We also want to avoid the operational complexities and regulatory scrutiny that come with crypto. By staying out of that arena, we can channel our energy into building robust, practical solutions for our core clients.
As a digital-first bank, how will you address any potential misconceptions that VALT might be involved in blockchain or crypto technologies?
Communication will be key. We’re emphasizing in all our messaging that VALT is about modernizing traditional banking for established businesses, not chasing speculative trends. We’ll highlight our focus on practical digital tools—think automated payments or integrated dashboards—rather than anything tied to blockchain or crypto. Transparency about our model and services will help set clear expectations with clients and regulators alike.
Can you tell us more about the team behind VALT Bank and why this group is well-suited to lead a digital banking venture?
Our team brings a wealth of experience from traditional banking, which gives us a strong foundation in governance and risk management, paired with a forward-thinking approach to technology. My own background in wealth management has taught me the importance of client-centric solutions, which is central to VALT’s mission. Our proposed executive chair and vice chair have deep expertise in business banking, while our additional directors contribute legal and investment perspectives. Together, we’re a balanced team with the skills to build a safe, innovative, and customer-focused bank.
What is your forecast for the future of digital banking, especially for small to midsized businesses in the U.S.?
I believe digital banking will become the default for small to midsized businesses over the next decade. As younger, tech-native entrepreneurs take the helm of these companies, the demand for seamless, integrated financial services will only grow. We’ll see more banks like VALT emerging—nimble, focused, and tech-driven—while traditional institutions will face pressure to adapt or lose market share. The challenge will be balancing innovation with regulatory compliance, but I’m optimistic that with the right approach, digital banks can transform how businesses manage their finances.
