VersaBank: A Pioneer in the Digital Banking Space
Paving the way to the future with its branchless, digital online system
VersaBank believed that the true potential of virtual banking wasn’t just more efficiency but more choice. By combining its own robust banking technology with the discipline and confidence of a Schedule 1 Canadian chartered bank license, the company was able to help create innovative banking alternatives that clients could trust.
“VersaBank is a concept that I came up with in the early 90s. The idea was to apply new technology to the banking industry, to serve markets that I thought were not served so well by the larger banks,” says President and CEO David Taylor.
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VersaBank is a Schedule I chartered bank. Additionally, its success is based on its initial vision for a new kind of financial institution. It’s a “branchless” commercial bank that makes full use of innovative technologies. By investing in highly skilled, experienced people and in advanced computing technologies rather than in bricks and mortar, they have significantly grown their assets and continue to achieve record efficiencies.
The bank provides two primary services – deposits and financing. Moreover, they’ve partnered with existing nationwide brokerage firms to raise the bank’s deposits. Today, VersaBank has relationships with almost all of the large Canadian bank-owned brokerages as well as over 100 small to mid-size financial advisory firms across the country.
The bank has seen steady growth. “Our bank has been able to produce an industry leading net interest margin. It hovers around three percent. We’ve had a compounded average growth rate going back even six years of over 30 percent of our corporate cash earnings. And our net income has grown over 20 percent over that period of time, compounded average growth rates,” says Taylor.
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