#Canada #London #VersaBank #Receivable Purchase Program #Timothy Comiskey

VersaBank Expands Services with New Securitized Financing

VersaBank, recognized as a leading North American digital business bank, has recently taken a significant step forward in the financial sector. With the launch of a new securitized financing solution for its Receivable Purchase Program (RPP), the bank aims to significantly enhance its offerings in both the United States and Canada. This strategic move targets point-of-sale and various financing companies, enabling additional asset growth and increased earnings potential.

The newly introduced RPP Securitized Financing is designed to attract financing partners by investing in senior-level tranches of securitized credit assets that are typically rated AAA. These investments are subject to the Bank’s standard credit approval process. In line with the current economic trend, this initiative aims to meet the growing demand for low-cost securitized financing options among larger point-of-sale financing companies.

David Taylor, the Bank’s President, emphasized the immense opportunity that lies ahead, particularly in the U.S. market. With a national, OCC-licensed status, VersaBank is well-positioned to enrich its asset and earnings growth. The bank's securitized financing options boast a relatively low risk weight – approximately 20% or one-fifth the normal risk weight of standard RPP financings. Although these options may yield a lower spread, they are expected to boost the return on common equity significantly.

The strategy for securitization combined with RPP offerings not only facilitates the establishment of robust relationships with partners but also provides a comprehensive financing solution regardless of prevailing interest rates. As interest rates stabilize and return to historical averages, this addition could strengthen the core offerings of the Receivable Purchase Program.

Simultaneously, VersaBank is amplifying its RPP initiative in Canada, aiming to capture further business from existing partners while attracting new ones. This expansion is intended to enhance its position within the competitive market landscape.

To ensure the effective growth of this new financing option, Timothy Comiskey has been appointed as the Managing Director for Origination, Structuring, and Securitization. Mr. Comiskey's extensive background, spanning over three decades across various financial sectors, positions him as a vital asset in leading this venture. His experience includes senior roles in financial product development and risk underwriting strategy, showcasing a track record that aligns well with the objectives of VersaBank.

Previously associated with Nasdaq and GCSA Capital Partners, Comiskey’s background encompasses audit control processes, risk management operations, and the launch of risk transfer products for financial market infrastructures. His expertise will be instrumental in driving growth and expanding VersaBank's market outreach in the U.S., further solidifying its competitive edge in the rapidly evolving financial landscape.

VersaBank distinguishes itself from traditional banking institutions with its innovative approach. Operating without physical branches, the bank utilizes cutting-edge technology to cater to underserved markets effectively and profitably. It primarily acquires deposits and funding digitally through financial partners, ensuring operational efficiency and enhanced returns on equity. With a successful history of the Receivable Purchase Program in Canada, VersaBank is now ready to disrupt the sizable U.S. market by delivering highly sought-after funding solutions to point-of-sale finance companies.

In an era defined by increasing digitalization and cyber threats, VersaBank has also established itself as a provider of cybersecurity services through its subsidiary, DRT Cyber Inc. This move not only fortifies the bank’s strategy in financial services but also addresses the pressing needs for security against the backdrop of rising cyber threats in today's digital economy.

This transformative step represents a pivotal moment for VersaBank, showcasing its commitment to innovation and leadership within the banking sector. By appealing to a broader range of financing options through securitized solutions, VersaBank sets the stage for future sustainability and growth within its specialized market niches.

As the financial landscape continues to evolve, VersaBank stands ready to adapt and thrive, proving once again its mettle as a leader in digital banking solutions for businesses across North America.