VersaBank is collaborating with FinanceIt for a fintech pilot program.
London, Ontario’s VersaBank, which trades on the TSX as VBNK, offers business-to-business digital banking services and cybersecurity solutions.
Federally chartered in both Canada and the US, VersaBank operates on a branchless, digital, business-to-business model based on proprietary technology that enables the organization to address underserved segments of the banking industry.
Toronto’s FinanceIt, meanwhile—among Canada’s fastest-growing fintech enterprises—is filling the gap in home upgrade financing.
VersaBank, which has also been active on the cryptocurrency front, has commenced its pilot program with partner FinanceIt for the Bank’s new Real-Time Structured Receivable Program.
The firm’s Real-Time SRP innovates point-of-sale financing, providing a reliable funding solution while eliminating the need for SRP partners to warehouse multiple receivables over a period of time.
The purpose of the Pilot Program is to demonstrate the functionality and operational integrity of the Real-Time SRP in a real-world scenario, according to a statement from the organizations. This will help refine the solution for full implementation by FinanceIt and rollout to other VersaBank partners across Canada.
“VersaBank’s Real-Time Structured Receivable Program takes our unique and highly successful digital point-of-sale financing solution to a whole new level,” explains founder David Taylor, “further extending our competitive advantage and, more importantly, significantly expanding the addressable market for our SRP on both sides of the border.”
In Canada, “we expect the launch of our Real-Time SRP to enable us to win additional financing business with our existing partners while enabling us to acquire new partners with more specialized financing needs that we were previously unable to address,” he says.
“We are especially proud to be bringing this cutting-edge innovation to this time in support of both the Canadian Federal Government’s and the Office of the Superintendent of Financial Institutions’ stated desire to support the economic activity of both small business and consumers,” Taylor added.
VersaBank’s Real-Time SRP “is a game changer,” according to Casper Wong, cofounder and chief executive officer of FinanceIt (who was interviewed by Fintech.ca Editor Rob Lewis recently).
“The ability to instantly finance individual loans significantly enhances the efficiency and economics of our long-standing strategic relationship with VersaBank and is aligned with our own long term innovation objectives,” the entrepreneur continued. “For more than a decade, VersaBank’s Structured Receivable Program has been foundational to our growth and success.”
VersaBank’s Real-Time SRP “is yet another in our long track record of firsts in the banking industry,” according to Taylor, with shares in the publicly traded firm up more than 60% over the past year.
“We are, as we always have been, as much a software and technology company as we are a national, federally licensed bank,” he says, adding: “The Real-Time SRP is the result of our relentless pursuit of continuous innovation to address underserved markets in the banking industry based on our internally developed, proprietary core banking software, which is now being supercharged by the addition of our own AI technology.”
“We look forward to the significant additional benefits that the Real-Time SRP will generate for our business,” said Wong.
Leave a Reply