LONDON, ON, March 31, 2022
/PRNewswire/ - VersaBank ("VersaBank" or the "Bank") (TSX:
VBNK) (NASDAQ: VBNK), a leader in digital banking and cyber
security solutions, today 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.
"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."
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.
ABOUT SECURCOR FINANCIAL GROUP
Securcor Financial Group provides customized securitization,
receivable and structured financing programs to clients across
North America. Securcor has
established strong funding alliances with several leading financial
institutions and, since inception, has originated in excess of
$6 billion in automobile financing,
equipment leases and consumer finance contracts. To learn more,
please visit www.securcor.com.
ABOUT VERSABANK
VersaBank is a Canadian Schedule I chartered bank with a
difference. VersaBank became the world's first fully digital
financial institution when it adopted its highly efficient
business-to-business model using its proprietary state-of-the-art
financial technology to profitably address underserved segments of
the Canadian banking market in the pursuit of superior net interest
margins while mitigating risk. VersaBank obtains all of its
deposits and provides the majority of its loans and leases
electronically, with innovative deposit and lending solutions for
financial intermediaries that allow them to excel in their core
businesses. In addition, leveraging its internally developed IT
security software and capabilities, VersaBank established wholly
owned, Washington, DC-based
subsidiary, DRT Cyber Inc. to pursue significant large-market
opportunities in cyber security and develop innovative solutions to
address the rapidly growing volume of cyber threats challenging
financial institutions, multi-national corporations and government
entities on a daily basis.
VersaBank's Common Shares trade on the Toronto Stock Exchange
("TSX") and Nasdaq under the symbol VBNK and its Series 1 Preferred
Shares trade on the TSX under the symbol VBNK.PR.A.
Visit our website at: www.versabank.com
Follow VersaBank on Facebook, Instagram, LinkedIn and
Twitter.
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SOURCE VersaBank
