In episode 63 of Tech Startups with Fexingo, Lucas and Luna dive into Mercury’s rise as the banking platform of choice for over 100,000 startups. Instead of applying for a bank charter, Mercury partnered with already-regulated banks like Evolve Bank & Trust and Choice Financial Group. Lucas explains how this 'banking-as-a-service' stack worked, the regulatory arbitrage involved, and why incumbents like Silicon Valley Bank missed the startup banking opportunity. Luna questions whether the model can survive tighter fintech regulation, pointing to the 2023 SVB collapse as a cautionary tale. The conversation covers Mercury’s key features, including virtual cards, treasury accounts, and integrated venture debt. They also touch on the rise of startup-focused lenders like Brex and Ramp, and what the future holds for embedded banking.