VersaBank announced that it has added three new partners in its Insolvency Professional Deposits business, further expanding its access to very low-cost deposit funding, and further strengthening a core element of its business model to support continued growth, while providing additional risk-mitigation through increased deposit diversification.
Read More: Analyticom Introduces a Scientific Model That Keeps Investments Stable During Market Volatility
“Low-cost deposit funding is an integral part of VersaBank’s business model and a significant contributor to the Bank having the highest net interest margins amongst its publicly traded peers, as well as the Bank’s track record of strong earnings growth”
“Low-cost deposit funding is an integral part of VersaBank’s business model and a significant contributor to the Bank having the highest net interest margins amongst its publicly traded peers, as well as the Bank’s track record of strong earnings growth,” said David Taylor, President and Chief Executive Officer, VersaBank. “As we recently reported, the second quarter of 2020 saw the Bank achieve one of the lowest cost of funds in our history. This further expansion of our access to Insolvency Professional deposits will contribute to what we expect to be a continuing decrease in cost of funds as we pursue expansion of our lending portfolio, notably enabling us to pursue new high-growth potential opportunities as we put our lending capacity of more than $2 billion to work.”
Read More: Kreditech Rebrands to Monedo as It Steps Up Growth in International Lending Markets
VersaBank’s three new Insolvency Professional partners add to its roster of more than 100 Insolvency Partner offices across Canada. In 2012, VersaBank identified a significant and unmet need amongst Canadian Insolvency Professionals who were being underserved by generic deposit offerings that did not integrate with their own systems, resulting in inefficiency and higher costs. Working closely with the two largest insolvency firms in Canada, the Bank developed a high value-add solution that is now used by the vast majority of Insolvency Professionals in the country, providing VersaBank with a very low-cost source of funding.
Read More: Jack Henry & Associates Launches Core-Integrated Accounts Receivable Financing
