The banking industry is one of Canada’s thriving and most important sectors of the economy. The Great White North is dominated by several large and small financial institutions, including brick and mortar banks, digital or virtual banks, credit unions, and more.
When digital banking started in Canada, it brought with it a new banking and financial transactions system for Canadians. The majority of Canadian banks have now included online banking services in addition to conventional in-person branch transactions.
However, many Canadians prefer to transact with branchless or online banks due to their convenience, cost-effectiveness, high interest rate, and time-saving features.
VersaBank is one of the earliest digital banks in Canada. The bank claims to be Canada’s first virtual, branchless and electronic bank that has since its inception served the Canadian financial market to date.
About VersaBank Canada
VersaBank is a Schedule 1 Canadian chartered bank operating as a technology-based and branchless financial service provider. The bank was established as a Trust Company (Pacific and Western Trust) in 1980 in Saskatoon, Saskatchewan.
VersaBank was established through an idea conceived by David Taylor, the company’s president, and CEO, with over 40 years of experience in the Canadian financial system.
In 1993, Taylor acquired the Pacific and Trust company (PWC) and reconfigured it to a branchless electronic bank. This was made easier due to PWC’s CDIC membership. To better position the company’s services, Taylor relocated the bank’s headquarters from Saskatoon to London (Ontario).
In August 2002, the Canadian government granted the trust company the license to operate as a Schedule 1 chartered bank. As a public-traded bank and to reflect its national and versatile virtual operations, the bank changed its name from Pacific Western Trust (PWC) to VersaBank in 2016.
Using advanced computing technologies in its commercial banking operations, the bank provides two distinct services of deposits and financing to its customers.
VersaBank obtains its deposits electronically through financial intermediaries and partner brokerages, including large Canadian bank-owned brokerages and over 100 small to mid-sized advisory firms.
The bank also provides financing (loan) services through its various lending offices across Canada, including London, Vancouver, Waterloo, and Saskatchewan.
VersaBank Products and Services
As a commercial bank, VersaBank’s major products and services include deposit and financing (lending) services. The bank operates electronically in providing these services to its numerous customers across Canada.
VersaBank Deposits
VersaBank gathers and obtains deposits electronically using financial technology to meet customers’ needs through its network of deposit brokers across Canada.
The bank partners with several deposit brokers, including in-house brokerage firms of the “big six banks.” Therefore, from its corporate office in Saskatchewan, VersaBank provides the following services and products at competitive interest rates.
1. Custom Web-Based Chequing Accounts
This is an integrated banking solution designed by VersaBank for insolvency professionals. Unlike the conventional chequing accounts, the custom web-based chequing account was developed as a tailored banking solution for day-to-day banking transactions.
Features
- Cost-effective integrated solution for banking and file administration.
- It reduces input errors and duplication of work.
- Customers can deposit at any RBC branch in Canada.
- Quick and effortless access to cleared cheques.
- Digital and automated bank statement reconciliation.
- Access to secure online and user-friendly web banking portal.
- Dedicated and professional service team to provide insolvency-related solutions.
- Deposits are eligible for CDIC protection.
2. Guaranteed Investment Certificates (GICs)
Customers of VersaBank can expand their investment portfolio with the banks’ Guaranteed Investment Certificates (GICs). VersaBank’s GICs are transferrable, assignable and eligible for CDIC insurance.
These GICs are available in short and long terms of thirty days to five years at guaranteed and competitive interest rates. VersaBank GICs are non-redeemable before maturity and comes with minimum deposits of $5,000 for monthly certificates and $1,000 for yearly certificates.
VersaBank’s Registered GICs are available in one to five-year terms at competitive rates and are non-redeemable until maturity.
Note: Rates are subject to change by the issuer without any prior notice. Check for current rates before financial commitments.
3. Registered Retirement Savings Plans (RRSP)
You can take advantage of VersaBank’s RRSP and enjoy tax-protected earnings for your retirement.
Note: Rates are subject to change by the issuer without any prior notice. Check for current rates before financial commitments.
4. Daily Interest Savings Account
VersaBank offers a no-fee savings account that earns you high interest on your closing account balance. The Sunrise Daily Interest Savings Account offers exclusive features including:
- No minimum balance requirement
- No monthly fees
- No locked-in funds
- Deposits are eligible for CDIC insurance
- Funds are available and accessible at any time.
- The account comes with a 0.500% interest rate and payable monthly
5. Tax-Free Savings Account (TFSA)
VersaBank’s TFSA product combines its high-interest Sunrise Savings Account and annual compounding guaranteed investment certificates. The account earns you tax-deferred interest and earnings and also comes with CDIC protection.
VersaBank Financing (Lending) Services
From its various lending offices across Canada, VersaBank provides leasing and lending services at 2.45% Prime Rate to Canadians, including:
- Real Estate and Development Financing
- Commercial and Corporate Lending
- Bulk Receivable Purchase Program
VersaBank’s Point of Sale Financing (e-Commerce)
This is the Receivable Purchase Program of VersaBank, which involves purchasing loans and lease receivables from finance companies in Canadian industries.
The bank provides the required capital for small businesses to reach a wider number of Canadian consumers. With its state-of-the-art technology and methodology, VersaBank can finance and ensure quick processing of small-ticket loans and lease receivables.
VersaBank’s Commercial Banking
Corporate and commercial lending service is one of VersaBank’s core competencies. The bank’s team of experienced lenders has over 100 years of first-hand lending knowledge.
The bank specializes in real estate lending for residential and commercial developments and flexible loan terms. VersaBank’s commercial banking provides financing solutions for:
- Residential mortgages
- Public sector and infrastructure financing
- Commercial real estate
- Condominium financing
DRT Cyber
DRT Cyber is VersaBank’s cybersecurity subsidiary to develop innovative solutions against cyber threats.
As an online and branchless financial institution, the bank understands the challenges faced by financial service providers, government entities, and multinational corporations due to the activities of cyber thieves.
Therefore, the Washington-based DRT Cyber was launched by VersaBank in 2019 to identify cybersecurity threats and develop solutions that can address these challenges.
Versa Vault
Versa Vault from VersaBank claims to be the world’s first digital bank vault for cryptocurrency exchanges and funds. Versa Vault is designed to incorporate the security features of Blockchain-based virtual assets.
By maintaining a high security level and privacy, Versa Vault is an ideal solution for organizations seeking to protect the interests and funds of their customers.
Versa Vault is managed by a regulated company, Chairmans Financial B.V., to provide cryptocurrency security solutions and flexible access.
Regulations and Membership
VersaBank is a federally regulated Schedule 1 chartered bank in Canada that operates by licence and supervision of the Superintendent of Financial Institutions (OSFI). The bank’s services are also supervised by regulatory agencies, including:
- Registered Deposit Brokers Association (RDBA)
- Financial Consumer Agency of Canada (FCAC)
- Canada Mortgage and Housing Corporation (CMHC)
VersaBank is also a member of the Canada Deposit and Insurance Corporation (CDIC) which ensures that eligible deposits are insured up to $100,000 per account. Eligible deposit instruments and products include:
- Guaranteed Investment Certificates (GICs)
- RRSP Savings Account
- Sunrise Daily Interest Savings Account
- RRSP Guaranteed Investment Certificates
- TFSA Guaranteed Investment Certificates
- TFSA Sunrise Savings Account
- Mortgage Tax Account
VersaBank Customer Service
For comments, feedback, and general enquiries, you can reach the contact desk of VersaBank through the following channels:
Phone: 1-866-979-1919
Mailing Adress:
Lending Office
VersaBank Head Office
140, Fullarton Street, Suite 2002
London, Ontario
N6A 5P2
Deposits Office
VersaBank
410-121, Research Drive
Saskatoon, Saskatchewan
S7N 1K2
Editor’s Review
VersaBank’s innovative services and products have endeared many organizations and businesses to its technology-based platform.
If you want the convenience of branchless commercial banking with security measures for banking services and cryptocurrency protection, VersaBank should be at the top of your preferred service providers.
However, as a commercial, branchless bank, the bank does not provide its services to individuals, just corporate entities, and government institutions.
Also, VersaBank does not offer in-person branch services to its customers.
FAQs
Who owns VersaBank?
VersaBank is a Schedule Canadian 1 chartered bank established by David Taylor.
How can I deposit into my VersaBank account?
As a branchless commercial bank, VersaBank obtains its deposits and provides the majority of its loan and financing services electronically. The bank works with accredited deposit brokerages across Canada.
Can I trade VersaBank stock on the stock exchange?
VersaBank is a public traded bank, traded as TSX: VB on the Toronto Stock Exchange.
