On today's episode of the Fintech Impact, Jason Pereira is going to talk to Cato Pastoll, the CEO of Loop. They will discuss Loop's platform and how it helps companies operating as Canadian businesses get access to banking services in another market.
Episode Highlights:
- 0.43: Loop is an online banking and payment platform. They help companies that are operating as Canadian businesses to get access to banking services in another market.
- 4.33: Cato says that they help companies get access to local banking in different markets.
- 7.46: Cato explains that they have been able to automate the account opening process in terms of customer verification, ID collection, and all that type of stuff required to verify customers.
- 9.33: Cato says that they save companies time because we offer all things in one platform, and that is easy to use. We save the money because we give it all this way for free.
- 10.44: Customers are delighted, specifically because they are saving a huge amount of money on every dollar they are spending in non-Canadian currencies.
- 12.09: Cato made it easier to deal with a major problem before allowing for potential companies to expand into a jurisdiction without the burden.
- 13.20: With our card, you get 55 days of interest-free spending when you spend money on the card. We offer the first 55 days of working capital that you have for zero cost as a merchant, says Cato.
- 15.21: It's not like we are giving you anything for no cost, but giving it to you for no cost means that you can use our product in the finance network and capital gap and save a lot of money, says Cato.
- 19.08: There is way too much of a structural gap between the capital that small companies can access and large companies can access, and that's driven by an efficiency more than a risk equation.
- 23.06: Cato is not able to take any credit away from the founder of the business because they are 100% responsible for their own success, but the impact we were able to have by supporting them when nobody else would is a really exciting thing that kept him going every day.
3 Key Points
- There are now banks in the US that will open accounts for non-US residents, and the way that we do that is we are helping facilitate all the KYC and KYP processes required to onboard customers.
- Companies have loved the loop product so far. We have had people posting status recently on Twitter and social media accounts talking about how much money they are saving with Loop versus their bank cards that they were using before.
- There are many acquirers or merchants, and processors who will help you collect money in different currencies by charging your customers in different currencies.
Tweetable Quotes
- "We are helping simplify the process and operations of managing your business across borders." – Cato
- "We have the ability to make domestic supplier payments through the exchange network, which is other countries' local payment rails." – Cato
- "We really want to demonstrate a lot of value to customers in this segment by giving them embedded value in our products from the get-go well." - Cato
Resources Mentioned:
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