Revolut alums, Saud Aziz and Ahmed Shafik, have made headlines with their latest venture, Vault, an online banking platform catering to small-to-medium-sized businesses (SMBs) in Canada. After securing $3.7 million in seed funding, Vault is now launching its mission to revolutionize the banking experience for Canadian entrepreneurs and SMBs by offering efficient money management and cost savings on banking fees.
The founders, having witnessed the challenges faced by their own parents as small business owners, recognized the need for a modern banking solution tailored to the unique requirements of Canadian businesses. Unlike the United States, where startups like Mercury, Brex, and Ramp have emerged, Canada lacks similar options. Business owners often contend with antiquated processes, such as visiting a branch to make wire transfers and incurring high fees. With limited banking choices, Canadian entrepreneurs are eager for a more streamlined and technologically advanced banking experience.
Vault’s platform aims to address these pain points by providing a seamless and quick signup process, allowing entrepreneurs and business owners to open an account in less than five minutes. The company differentiates itself by offering key features such as no monthly or annual fees, no minimum balances, local accounts in multiple currencies, real-time currency exchange at a fraction of the cost compared to traditional banks, a multi-currency Mastercard corporate card with 1% cashback, spend management tools, and free domestic and international bank transfers. The platform also integrates accounting software to automate bookkeeping processes.
To further meet the financial needs of Canadian businesses, Vault plans to expand its services to include lending, savings products, payment automation, and more complex foreign exchange products later this year. Additionally, the company offers investment products such as guaranteed investment certificates (GICs) with up to 5.00% earnings. Vault’s goal is to become a comprehensive financial partner for SMBs, empowering them with the tools and resources needed to thrive in today’s competitive market.
The success of Vault’s seed funding round, which closed in 2021, is a testament to the platform’s potential. Gradient Ventures and Fin Capital co-led the funding, with participation from notable investors such as The Fintech Fund, Exponent Capital, and Thirdbase Capital. The company also boasts an impressive lineup of angel investors, including founders and executives from PayPal, Google Pay, Affirm, BNY Mellon, Airbnb, Coinbase, Revolut, and Robinhood. These strategic partnerships and financial backing demonstrate the confidence industry leaders have in Vault’s vision and value proposition.
Building Vault’s infrastructure from scratch has been a significant undertaking. Recognizing the lack of fintech infrastructure in Canada, the company invested its first year in developing in-house card transfers and account products, establishing compliance programs, and forming partnerships with regulated financial institutions. By building its own infrastructure, Vault ensures a robust and tailored solution that meets the unique needs of Canadian businesses, differentiating itself from traditional banks and niche fintech alternatives.
Vault’s initial pilot program with 25 companies paved the way for rapid growth, with the company now onboarding hundreds of new businesses monthly. Its diverse customer base ranges from small businesses with two employees to larger enterprises with up to 100 employees. The platform’s multi-currency functionality has been particularly well-received, allowing businesses to conduct international transactions without worrying about high foreign exchange rates or excessive transfer fees.
Zach Bratun-Glennon, founder and general partner at Gradient Ventures, believes that Canada presents unique financial service and technology needs. The market features a high volume of cross-border transactions, multinational corporations, and a growing hub for innovation. However, the adoption of new financial technologies in Canada has been slower compared to larger markets like the U.S. and the EU. Vault’s comprehensive platform, which replaces a business’s entire financial stack, has the potential to close the gap between Canadian and U.S. financial institutions.
Vault is poised to disrupt the Canadian banking landscape by providing a modern and comprehensive platform tailored specifically for small-to-medium-sized businesses. With its user-friendly interface, quick signup process, and an array of features designed to streamline financial operations, Vault addresses the pain points experienced by Canadian entrepreneurs who have long relied on traditional banks and limited fintech alternatives.
The successful seed funding round and the support of prominent investors underscore the confidence in Vault’s vision and potential to transform the banking experience for SMBs. By leveraging its in-house infrastructure and partnerships with regulated financial institutions, Vault ensures a secure and reliable platform that meets the compliance standards of the industry.
With plans to expand its services to include lending, savings products, payment automation, and more complex foreign exchange options, Vault aims to become a one-stop financial solution for businesses of all sizes. By offering competitive rates, cost savings, and multi-currency functionality, the platform empowers entrepreneurs to manage their finances efficiently, reduce unnecessary fees, and conduct international transactions seamlessly.
As Canada continues to foster innovation and entrepreneurship, Vault’s emergence signifies a positive shift in the financial landscape, bringing much-needed technological advancements and modern banking solutions to the forefront. With its strong foundation, strategic partnerships, and commitment to meeting the evolving needs of Canadian businesses, Vault is poised to play a pivotal role in shaping the future of SMB banking in Canada.
