What Versabank does

VersaBank is a federally chartered Schedule I Canadian bank, founded in 1995 and headquartered in London, Ontario, that operates as what it describes as the world's first fully digital financial institution. It employs a cloud-based, branchless, business-to-business model in which deposits are obtained and financing is provided digitally through third-party financial intermediaries ("partners") rather than through retail branches. The bank serves over 1,200 clients across North America, primarily point-of-sale financing companies, financial intermediaries, and institutional clients of its subsidiaries.

Its core offering is the Receivable Purchase Program (RPP), also branded as the Structured Receivable Program (SRP), which purchases receivable streams originated by POS financing companies in consumer and small-business lending verticals such as home improvement, HVAC, and equipment financing. In April 2026, VersaBank launched the AI-enabled Real-Time SRP, a per-loan financing extension of the RPP that funds individual loans within hours rather than requiring partners to warehouse receivables for 5-30 days; FinanceIt Canada Inc. is the pilot partner. The US RPP, launched in January 2025 following the August 2024 acquisition of Stearns Bank Holdingford N.A. (renamed VersaBank USA N.A.) for approximately US$14.1 million, reached US$604.9 million by Q2 2026 against a stated US$1 billion fiscal 2026 target. The underlying technology stack includes the proprietary VersaView blockchain platform (supporting Real Bank Deposit Tokens with 24/7 cross-border US-Canada FX functionality), VersaVault digital asset custody (used for QCAD stablecoin custody under a February 2026 agreement with Stablecorp), and a SOC2 Type 1-compliant digital asset subsidiary called Digital Meteor, Inc.

VersaBank generates revenue primarily through net interest income on its receivable purchase and lending portfolios — a model it states produces a net interest margin among the highest of publicly traded Canadian Schedule I banks. Supplementary revenue streams include fees from the QCAD stablecoin custody agreement, transactional fees on US RPP fundings, CMHC-insured multi-family residential mortgage lending, and recurring cybersecurity and risk-management revenue from its Washington, DC-based subsidiary DRT Cyber Inc., which serves over 400 institutional and government clients. In fiscal 2025, total revenue was $124.6 million (CAD), with Q2 2026 revenue of US$38.3 million representing 27% year-over-year growth and Q2 2026 adjusted net income of US$12.4 million up 45% year-over-year; total assets reached US$6.15 billion in Q1 2026. VersaBank is publicly listed on the Toronto Stock Exchange and Nasdaq Global Select Market under ticker VBNK, and is pursuing a corporate reorganization under a new Delaware holding company, Versa Bancorp, via Form S-4 filed with the SEC in June 2026.

Name

Versabank

Legal name

VersaBank

Website

https://versabank.com

Company type

Public

Founded year

1995

Operating status

Operating

Headcount range

101–250 employees

Short description

VersaBank is a federally chartered Canadian digital bank operating a cloud-based, branchless B2B model. It funds point-of-sale financing companies through its Receivable Purchase Program, serves 1,200+ clients across North America via VersaBank USA, and offers digital asset custody and cybersecurity services.

Ownership category

akta.pro rank

Product category

Digital Banking Services

NAICS

Commercial Banking (52211), Nondepository Credit Intermediation (5222)

SIC

National Commercial Banks (6021), Short-Term Business Credit Institutions (6153)

akta.pro primary industry

B2B / Invoice-Based BNPL (Trade Credit at Checkout) (FSAGAIAC)

akta.pro secondary industries

Direct Lending — Specialty Finance (Consumer/SME Lending Platforms) (FSAHAJAF), SME Banking Suite (Business Accounts, Invoicing, Payroll Integrations) (FSAGAAAI)

Keywords

• Digital banking services
• Receivable purchase financing
• Point-of-sale lending
• Digital asset custody
• Cybersecurity services

Headquarters

HQ city

Toronto

HQ country

Canada

HQ region

North America

Offices4 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Technology or R&D, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Net Interest Income: Primary revenue stream from lending activities through the Receivable Purchase Program (RPP) which purchases receivable streams from point-of-sale financing companies. Net interest margin historically among the highest of publicly traded Canadian Schedule I banks.
2. Cybersecurity Services (DRT Cyber Inc.): Revenue from cybersecurity services provided to financial institutions, multinational corporations, and government entities through wholly-owned subsidiary DRT Cyber Inc. Services include cybersecurity, privacy, and risk management solutions.
3. Digital Asset Custody Services: New revenue stream from stablecoin custody services. VersaBank earns fees based on the value of QCAD assets held in custody as well as a spread on QCAD deposits under its agreement with Stablecorp.
4. Receivable Purchase Program Fees: Fee income from partners for funding receivable purchases under the RPP. Includes both core RPP offerings and securitized RPP offerings. US RPP surpassed US$310 million in fiscal 2025, exceeding the US$290 million target.
5. CMHC-Insured Lending Program: Revenue from multi-unit residential mortgages insured by Canada Mortgage and Housing Corporation (CMHC). Expected to generate minimum $2 million in incremental revenue in fiscal 2026 with de minimis additional operating expenses.

Pricing tiers

Go-to-market motion3 records

Distribution channels3 records

Marketing channels5 records

Core offering

VersaBank is a North American cloud-based, branchless digital bank that operates a business-to-business model, obtaining deposits and providing financing digitally through third-party financial intermediary partners. Its core offering is the Receivable Purchase Program (RPP), which purchases receivable streams from point-of-sale financing companies that originate consumer and small business loans, providing these partners with permanent, readily available capital. Additional offerings include digital asset custody (VersaVault), tokenized deposits (RBTDs via VersaView), an AI-enabled Real-Time SRP for instant loan funding, CMHC-insured multi-family residential mortgages, and cybersecurity services through its DRT Cyber Inc. subsidiary.

Product overview

VersaBank is a North American digital bank offering a cloud-based, branchless, B2B model using proprietary technology. The core offering comprises VersaBank Digital Banking, the Receivable Purchase Program (RPP/SRP) for point-of-sale financing, and the AI-enabled Real-Time SRP for instant loan funding. The portfolio includes digital asset products: Real Bank Deposit Tokens (RBTDs) via VersaView blockchain platform, stablecoin custody services for QCAD using VersaVault technology, and Digital Meteor subsidiary for digital asset IP. The bank also operates DRT Cyber Inc., a cybersecurity subsidiary providing services to financial institutions and government entities. The SRP products work with partners including FinanceIt Canada, with the US expansion targeting the multi-trillion dollar point-of-sale financing market through VersaBank USA.

Differentiator

Problem solved

Functional benefit

Brands

• DRT Cyber: Cybersecurity services subsidiary providing security solutions to financial institutions, corporations, and government entities
• Digital Meteor
• VersaBank Real Bank Deposit Tokens
• Receivable Purchase Program (RPP)

Products and services

• Receivable Purchase Program (RPP) / Structured Receivable Program (SRP) Innovative point-of-sale financing solution for consumer and small business loans (home improvement, HVAC, equipment). Provides SRP partners with permanent, readily available capital access through VersaBank's proprietary banking technology. The US SRP targets the multi-trillion dollar US point-of-sale financing market. SRP portfolio exceeded CAD$4.4 billion as of January 31, 2026.
• Real-Time Structured Receivable Program (Real-Time SRP) AI-enabled innovation in point-of-sale financing enabling individual loans to be financed within hours rather than the typical 5-30 day warehousing period. Reduces financing costs and strengthens risk mitigation through individual loan-level AI evaluation on the proprietary platform.
• VersaBank Digital Banking Platform Cloud-based, branchless, business-to-business (B2B) digital banking model using proprietary state-of-the-art technology. Provides innovative deposit and lending solutions to financial intermediaries across North America, enabling partners to excel in their own businesses while substantially mitigating deposit and lending risk.
• DRT Cyber Cybersecurity Services Washington, DC-based cybersecurity subsidiary providing services to financial institutions, multi-national corporations, and government entities. Deploys technology solutions supporting cybersecurity, privacy, and risk management functions across numerous sectors. Addresses the growing volume of cyber threats challenging organizations.
• Stablecoin Custody Services (QCAD) Custody services for QCAD stablecoin using proprietary VersaVault technology. VersaBank earns fees based on value of QCAD assets held in custody plus a spread on QCAD deposits. Supports reserve custody for QCAD, Canada's first regulatory-compliant Canadian-dollar stablecoin issued by Stablecorp.
• VersaBank Real Bank Deposit Tokens (RBTDs) Proprietary Digital Deposit Receipts representing one-for-one digital representations of cash deposits issued by a federally licensed bank on blockchain. Offer advantages over stablecoins including interest payments and conventional deposit insurance eligibility. Issued on Algorand, Ethereum, and Stellar blockchains.
• CMHC-Insured Multi-Family Residential Mortgage Program Zero-risk weighted lending program for multi-family residential construction loans insured by Canada Mortgage and Housing Corporation. Targets developers with economic and efficient loans, generating attractive net interest margin while improving return on common equity without requiring regulatory capital allocation.

Quantifiable outcome

• 27% year-over-year revenue growth to $38.3 million in Q2 2026
• +5 more outcomes

Named customers5 records

Segments4 records

Ideal customer profiles5 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability3 records

Feature4 records

Partnerships

Six partnerships are on record, tiered core.

• FinanceIt Canada Inc.coreStrategic or Co-development Partner · 29 April 2026Long-standing strategic relationship with Toronto-based fintech. FinanceIt is the pilot partner for VersaBank's new AI-enabled Real-Time Structured Receivable Program, which innovates point-of-sale financing by enabling instant loan financing and eliminating the need to warehouse multiple receivables. The pilot demonstrates functionality before full implementation across Canada with potential for US expansion.
• Stablecorp Digital Currencies Inc.coreTechnology or Integration · 3 February 2026VersaBank signed definitive agreement to serve as custodian for Stablecorp's QCAD stablecoin, Canada's first regulatory-compliant Canadian-dollar stablecoin. VersaBank earns fees based on value of QCAD assets held in custody plus a spread on QCAD deposits. QCAD listed on Kraken exchange in April 2026. Investors include Coinbase, Circle, DeFi Technologies, and FTP Ventures.
• ECN Capital / Source One Financial ServicescoreChannel Partner/ Reseller/ Distributor · 8 December 2025VersaBank announced completion of additional funding with ECN Capital's subsidiary Source One Financial Services, bringing total funding to over US$90 million. Supports growth of ECN Capital's US Receivable Purchase Program and broader strategic relationship.
• RefinitivcoreChannel Partner/ Reseller/ Distributor · 3 November 2025Largest US RPP partner with initial funding of US$61 million. This partnership brought VersaBank's total US RPP fundings in fiscal 2025 to US$310 million, surpassing the initial target of US$290 million.
• Watercress Financial Group LLCcoreChannel Partner/ Reseller/ Distributor · 30 January 2025First post-acquisition US RPP partnership. Watercress Financial Group is a rapidly growing point-of-sale originator of home improvement loans in the US. Partnership immediately followed by multiple fundings with program functioning as expected.
• Stearns Bank Holdingford N.A. (acquired)coreOthers · 30 August 2024VersaBank acquired Stearns Bank Holdingford N.A. for approximately US$14.1 million (CA$19.0 million) in August 2024, renaming it VersaBank USA N.A. The OCC-chartered national bank provides VersaBank with its US banking charter and enables the launch of RPP in the US market.

Scale indicators8 records

Recent moves8 records

Expansion highlights7 records

Direct peers

• Affirm Holdings: US-listed BNPL and POS financing platform. Directly comparable as VersaBank funds POS finance originators (including Affirm-adjacent business models) through its Receivable Purchase Program; both compete in the multi-trillion-dollar US POS financing opportunity.
• Bread Financial Holdings: Major US private-label credit and POS financing provider. Comparable because both monetize consumer POS loan originations through funding partnerships and proprietary technology stacks, addressing similar merchant/retailer demand for embedded financing.
• PROG Holdings: Lease-to-own POS financing provider (Progressive Leasing). Comparable as both serve the underserved consumer credit POS segment — VersaBank via its RPP funding platform, PROG via direct lease origination — exposing both to similar consumer credit cycles.

Broad incumbents

• Synchrony Financial: Largest US private-label credit card and POS lender. Overlaps with VersaBank in funding consumer POS financing and storing receivables on balance sheet, but at materially larger scale and broader retail merchant base.
• Ally Financial: US digital-first bank with consumer and dealer floorplan lending. Comparable as a publicly traded branchless/online bank with strong net interest margins, although Ally operates at materially larger scale and across broader product lines.
• SoFi Technologies: US digital bank and lending platform. Comparable as a publicly traded, technology-led financial institution pursuing diversified lending growth; while broader than VersaBank's POS funding niche, both demonstrate the digital-bank scaling playbook VersaBank is pursuing in the US.

Emerging players

• LendingClub: US digital lending marketplace and bank holding company. Comparable in digital loan-origination technology and bank-chartered model, though LendingClub focuses on personal loans whereas VersaBank funds POS finance partners via RPP.
• Enova International: US online specialty finance company serving non-prime consumers and SMBs. Comparable in online specialty lending focus and use of data-driven underwriting; VersaBank funds similar end-borrowers indirectly through POS finance partners.
• Regional Management Corp. US consumer branch-based installment lender. Comparable in consumer installment lending exposure that VersaBank indirectly funds through its RPP platform, though Regional Management originates directly to consumers.
• Open Lending Corporation: US provider of lending enablement analytics and risk-based pricing for automotive and POS finance. Comparable as a technology-enabled funding partner in the consumer credit ecosystem, with overlapping customer base of finance companies that VersaBank also funds via RPP.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/versabank
• Facebookfacebook.com/VersaBank
• LinkedInlinkedin.com/company/versabank
• Instagraminstagram.com/versabank

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Subsidiaries3 records

Funding overview

Funding rounds2 records

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Versabank