Not a lot of upside, but on the other hand you don't have to deal with all the hassle to switch banks. Even as a private person, I don't relish the idea of switching my bank. I have quite a number of autopayments set up. My salary also goes automatically in my bank account. If I switch it would take me days to set up everything again. I imagine a small/medium company would go through this, but times 100. If you are short on manpower (and who isn't nowadays?), then you have better things to do.

The upside is that the bank you keep your money in doesn’t go out of business. Why keep your money there in the first place if you don’t get some kind of service you like from the bank?

I feel the exact opposite as you. Now that essentially 100% of deposits are guaranteed indefinitely, there is only downside to withdrawing.

For the same reason people went to SVB in the first place: better deals. JP Morgan won't give you the same below-market home-financing deals in return for you working with them exclusively at your startup.