VersaBank (“VersaBank” or the “Bank”), a leader in digital banking and cyber security solutions, announced it has entered into an agreement with its first Point-of-Sale Finance partner in the United States, a large, North American, commercial transportation financing business focused on independent owner/operators. As it does from time-to-time in its Canadian Point-of-Sale Finance business, VersaBank collaborated with Securcor Financial Group on origination and structuring of the transaction. The Bank expects to commence funding the partner in the coming weeks.
Latest Fintech Insights : Vesto Partners with Element Finance to Bring DeFi to Broader Set of Financial Institutions
“We are thrilled to bring our innovative Point-of-Sale financing solution, which has proven highly successful in Canada, to the US$1.8 trillion and growing U.S. consumer and small business finance market,” said David Taylor, President and Chief Executive Officer, VersaBank. “In many ways, the U.S. consumer and small business finance markets resemble those in Canada a decade ago. At that time, we saw the opportunity to leverage our state-of-the-art, proprietary banking software, innovative financing structures, as well as our access to low-cost funds, to address an unmet market need by providing a highly flexible and economically superior, technology-based alternative for businesses financing big ticket consumer and small business purchases. We are confident that U.S. consumer and small business finance companies will see the same value that so many have in Canada, including some of the country’s largest such businesses.”
Browse The Complete News About Fintech: Bank of America Commits to Investing in Overlooked Ventures Early Stage Startup Fund
Mr. Taylor added, “Importantly for our shareholders, the U.S. Point-of-Sale business represents a significant additional opportunity to grow our loan portfolio over the long-term, and to do so, as always, in a risk mitigated manner based on our unique model, supported by our best-in-class technology.”
VersaBank’s Point-of-Sale Financing business operates via its Receivable Purchase Program, which purchases loan and lease receivables from finance companies across a wide variety of sectors, including commercial equipment, consumer healthcare, vehicles and home improvement. VersaBank’s high-capacity systems enable it to rapidly process large numbers of small, individual loan and lease receivables. The Bank substantially eliminates the credit risk inherent in purchasing such loan and lease receivables by holding cash deposits made by the originators of the loan and lease receivables to offset potential credit losses.
Read More About Fintech News : Leal, a Colombian-Based Consumer and Fintech Startup, Secures a $10M Series A Led by Rakuten Capital and IDC Ventures
[To share your insights with us, please write to sghosh@martechseries.com]
