VERSABANK ANNOUNCES INDUSTRY BREAKTHROUGH INNOVATION IN POINT-OF-SALE FINANCING WITH START OF PILOT PROGRAM FOR AI-ENABLED REAL-TIME STRUCTURED RECEIVABLE PROGRAM

Rhea-AI Summary

VersaBank (TSX: VBNK) has launched a pilot with FinanceIt for a new Real-Time Structured Receivable Program (Real-Time SRP) to enable point-of-sale financing of individual loans within hours.

The Real-Time SRP eliminates the need to warehouse receivables for the typical five to 30+ days, leverages the bank's proprietary core banking software and internal AI, and targets expanded SRP adoption in Canada and the United States.

Positive

• Pilot commenced with FinanceIt for Real-Time SRP
• Warehousing reduced from typically 5–30+ days to financing within hours
• Expands addressable market in Canada and the United States
• Leverages proprietary software plus internal AI for loan-level evaluation
• Competitive advantage vs securitized financing providers in U.S. point-of-sale market

Negative

• None.

News Market Reaction – VBNK

-3.17%

-3.17% Session close to close

In the Apr 29 session, VBNK declined 3.17%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details a pilot of an AI‑enabled Real‑Time Structured Receivable Program intended ...

Analysis

This announcement details a pilot of an AI‑enabled Real‑Time Structured Receivable Program intended to shorten funding cycles and reduce warehousing needs from 5–30+ days to hours. It fits VersaBank’s broader push into digital, partner‑based banking and builds on earlier AI and tokenized‑deposit initiatives. Investors may watch for full rollout to partners, measurable effects on SRP growth, asset quality metrics, and any updates in future filings on revenue or credit performance tied to this product.

Key Figures

Current price: $18.32 52‑week range: $10.10 – $18.64 Volume: 25,870 shares +5 more

8 metrics

Current price $18.32 Pre‑news market close

52‑week range $10.10 – $18.64 Low–high prior to AI SRP pilot news

Volume 25,870 shares Today vs 20‑day avg 101,494 shares

Receivable warehousing period 5–30+ days Typical time partners previously warehoused SRP receivables

Q1 2026 revenue $36.5 million Total revenue, strong quarterly results

Q1 2026 net income $11.1 million Up from $8.1 million a year earlier

Q1 2026 EPS $0.35 Basic and diluted, vs $0.28 prior year

Credit assets $5.33 billion Q1 2026 credit asset base with low credit losses

Previous AI Reports

1 past event · Latest: Sep 18 (Positive)

Same Type Pattern 1 events

Date	Event	Sentiment	24h Move	Catalyst
Sep 18	AI capabilities rollout	Positive	+1.9%	Introduced internally developed AI for real‑time monitoring of RPP portfolio.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

For AI‑tagged announcements, the one prior event showed a modest positive reaction, suggesting investors have previously welcomed AI enhancements to VersaBank’s core technology.

Recent Company History

This announcement extends VersaBank’s technology‑driven strategy. In March 2026, the bank advanced its Real Bank Tokenized Deposits™ and FX capabilities. Earlier, it agreed to sell its Holdingford branch to reinforce its branchless, partner‑based model. In April 2026, progress in QCAD stablecoin custody and strong shareholder support at the annual meeting underscored backing for its digital initiatives. The new AI‑enabled Real‑Time SRP pilot builds directly on this focus on innovative, low‑touch financing platforms.

Key Terms

structured receivable program, real-time structured receivable program, point-of-sale financing, warehouse financing, +1 more

5 terms

structured receivable program financial

"its major Structured Receivable Program partner, FinanceIt Canada Inc."

A structured receivable program is a financing arrangement where a company turns its future customer payments into immediate cash by selling or pledging those expected receipts into a dedicated pool or vehicle. Think of it like selling future paychecks today to get money now; investors watch these programs because they change a company’s cash flow and risk profile, can affect reported debt and earnings, and rely on the quality and predictability of the underlying payments.

real-time structured receivable program financial

"for the Bank's new Real-Time Structured Receivable Program ("Real-Time SRP")"

A real-time structured receivable program is a financing setup where a company turns its customer invoices into immediate cash by selling or pledging them through an organized system that updates continuously as new invoices are created. For investors it offers a way to earn short-term returns tied to the timing and credit quality of those receivables — like buying a steady stream of small IOUs — and matters because it directly affects a company’s liquidity, risk profile, and near-term cash flow stability.

point-of-sale financing financial

"a breakthrough innovation in point-of-sale financing, providing the same reliable"

Point-of-sale financing is a payment option offered to buyers at the moment they check out, letting them split a purchase into installments or get short-term credit instead of paying the full amount upfront. For investors, it matters because it can boost sales, raise average order size and customer conversion rates for merchants, while creating fee and interest revenue — but it also introduces credit risk and reliance on consumer spending patterns.

warehouse financing financial

"reducing the overall financing cost and the need for warehouse financing."

Warehouse financing is a short-term loan arrangement where a lender advances money against a company’s stock of goods or recently originated loans so the company can keep operating until those assets are sold or packaged for longer-term funding. Think of it like a temporary storage locker loan that frees up cash now by using inventory or loan pools as collateral. For investors, it matters because changes in warehouse financing can quickly affect a company’s cash flow, leverage and vulnerability to funding disruptions.

artificial intelligence technical

"better leverage its own, internal AI platform through evaluation of the partner loans"

Artificial intelligence is the ability of computers and machines to perform tasks that typically require human thinking, such as understanding language, recognizing patterns, or making decisions. For investors, it matters because AI can enhance efficiency, uncover new insights, and enable smarter strategies, potentially impacting the value and performance of companies that develop or utilize this technology.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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– Industry First Real-Time SRP Capability Significantly Expands VersaBank's Addressable Point-of-Sale Market in Both Canada and United States; Provides Immediate Economic Benefit to Existing Partners –

– Real-Time Funding Capability Significantly Strengthens Bank's Competitive Advantage by Providing Immediate Incremental Economic Benefit to Existing Partners –

LONDON, ON, April 29, 2026 /PRNewswire/ - VersaBank (TSX: VBNK) (NASDAQ: VBNK) ("VersaBank" or the "Bank") a North American leader in business-to-business digital banking, as well as technology solutions for cybersecurity, today announced it has commenced a pilot program with one of its major Structured Receivable Program partner, FinanceIt Canada Inc. ("FinanceIt"), for the Bank's new Real-Time Structured Receivable Program ("Real-Time SRP") (the "Pilot Program"). The purpose of the Pilot Program is to demonstrate the functionality and operational integrity of the Real-Time SRP in a limited-scale, real-world scenario to refine the solution for full implementation by FinanceIt and simultaneous roll out to all VersaBank's current and prospective SRP partners in both Canada and the United States.

VersaBank's Real-Time SRP is a breakthrough innovation in point-of-sale financing, providing the same reliable, economically attractive funding solution as the Bank's existing SRP, with the additional benefit of eliminating the need for SRP partners to warehouse multiple receivables over a period of time (typically from five to 30 or more days). This enables the Bank's SRP partners to finance individual loans within just hours, reducing the overall financing cost and the need for warehouse financing. It also further strengthens VersaBank's exceptional risk mitigation capabilities by enabling the Bank to better leverage its own, internal AI platform through evaluation of the partner loans underlying the SRP receivables on an individual basis.

"VersaBank's Real-Time Structured Receivable Program takes our unique and highly successful digital point-of-sale financing solution to a whole new level, further extending our competitive advantage and, more importantly, significantly expanding the addressable market for our SRP on both sides of the border," said David Taylor, Founder and President, VersaBank. "In Canada, we expect the launch of our Real-Time SRP to enable us to win additional financing business with our existing partners while enabling us to acquire new partners with more specialized financing needs that we were previously unable to address. In the United States, where our current SRP has been very well received by the point-of-sale industry and demand is exceeding our expectations, the addition of real-time capability will enable us to further capture market share from securitized financing providers, expanding our growth potential there."

Mr. Taylor continued, "Our Real-Time SRP is yet another in our long track record of firsts in the banking industry. We are, as we always have been, as much a software and technology company as we are a national, federally licensed bank. The Real-Time SRP is the result of our relentless pursuit of continuous innovation to address underserved markets in the banking industry based on our internally developed, proprietary core banking software, which is now being supercharged by the addition of our own AI technology."

"We are especially proud to be bringing this cutting-edge innovation to this time in support of both the Canadian Federal Government's and the Office of the Superintendent of Financial Institutions' stated desire to support the economic activity of both small business and consumers."

"VersaBank's Real-Time SRP is a game changer. The ability to instantly finance individual loans significantly enhances the efficiency and economics of our long-standing strategic relationship with VersaBank and is aligned with our own long term innovation objectives." said Casper Wong, CEO of FinanceIt. "For more than a decade, VersaBank's Structured Receivable Program has been foundational to our growth and success. We look forward to the significant additional benefits that the Real-Time SRP will generate for our business."

ABOUT VERSABANK'S STRUCTURED RECEIVABLE PROGRAM

VersaBank's Structured Receivable Program ("SRP") is an innovative and highly attractive digital funding solution for finance companies that lend money to consumers and small businesses for what are typically "big ticket" purchases (e.g. consumer home improvement/HVAC projects and a wide variety of commercial equipment). It was specifically designed to address an unmet need in the market for consistently available, readily accessible financing with economically attractive capital designed to maximize return on equity while employing VersaBank's proprietary, state-of-the-art banking technology.

As of January 31, 2026, VersaBank's SRP portfolio exceeded CAD$4.4 billion (US$3.2 billion) and has grown at a compounded annual rate of 33% over the last five years. The Bank's SRP was launched into the United States in late fiscal 2024 and completed US$310 million in fundings in its first year, surpassing the Bank's first year target of US$290 million. Since VersaBank's RPP was first launched 2010, the Bank has provided more than CAD$14 billion (US$10 billion) in funding to North American financing companies. The SRP is designed to provide scalable, capital‑efficient growth for the Bank with strong credit performance and attractive risk‑adjusted returns.

ABOUT VERSABANK

VersaBank is a North American bank with a difference. Federally chartered in both Canada and the U.S., VersaBank has a branchless, digital, business-to-business model based on its proprietary state-of-the-art technology that enables it to profitably address underserved segments of the banking industry in a significantly risk mitigated manner. Because VersaBank obtains substantially all of its deposits and undertakes the majority of its funding activities electronically through financial intermediary partners, it benefits from significant operating leverage that drives efficiency and return on common equity. In August 2024, VersaBank launched its unique Structured Receivable Program funding solution for point-of-sale finance companies, which has been highly successful in Canada for over 15 years, to the underserved multi-trillion-dollar U.S. market. VersaBank also owns Minnesota-based DRT Cyber Inc., a North American leader in the provision of cyber security services to address the rapidly growing volume of cyber threats challenging financial institutions, multi-national corporations and government entities. Through DRT Cyber Inc., VersaBank owns proprietary intellectual property and technology to enable the next generation of digital assets for the banking and financial community, including the Bank's revolutionary and proprietary Real Bank Tokenized Deposits^TM.

VersaBank's common shares trade on the Toronto Stock Exchange and NASDAQ under the symbol VBNK.

Visit our website at: www.versabank.com

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SOURCE VersaBank

FAQ

What is VersaBank's Real-Time Structured Receivable Program (VBNK) pilot?

A pilot program to test real-time financing of individual point-of-sale loans within hours. According to VersaBank, the pilot runs with FinanceIt to validate functionality and operational integrity before broader rollout to SRP partners.

How does the Real-Time SRP change receivable warehousing for VBNK partners?

It eliminates multiday warehousing of receivables, which typically ran five to 30+ days. According to VersaBank, partners can finance individual loans within hours, reducing financing cost and warehouse needs.

Which partner is participating in the initial VBNK Real-Time SRP pilot?

FinanceIt Canada Inc. is the initial pilot partner. According to VersaBank, FinanceIt and VersaBank will use the pilot to refine the solution for full implementation and broader partner rollout.

What competitive impact does the Real-Time SRP have for VersaBank (VBNK) in the U.S.?

It aims to expand market share versus securitized financing providers in the U.S. According to VersaBank, adding real-time capability increases addressable market and growth potential in U.S. point-of-sale financing.

What technology does VersaBank use to enable the Real-Time SRP (VBNK)?

The bank uses its proprietary core banking software combined with its internal AI platform. According to VersaBank, AI enables loan-level evaluation and strengthens the bank's risk-mitigation capabilities.