On today’s episode of FPCBO we have brought back Cato Pastoll from Loop. This time he has got a new product that he is basically working with that solves a very simple problem - Opening of bank accounts for Canadian businesses in the US.
Episode Highlights:
- 1.19: Cato says that early this year, they launched Loop card which is a multi-currency card that allows users to spend in different currencies. Then more recently they launched the loop accounts product which allows users to open accounts in different currencies so a user can do business more seamlessly around the world.
- 5.48: If you get paid in the US dollars with bank account in Canada, bank will convert the money at that point, and they will often add markup as much as 3% on every dollar that you earn.
- 6.33: We do a digital onboarding process like many other Fintech products. We collect information on the company, fill online application forms, and have business names and address. We collect information on any directors of the business as well, explains Cato.
- 7.12: When you fill some information on the form, and we say you are approved and then once you are approved and once you have the ability to access an account with us you can then go and click on a button and get access to international account details all through platform, says Cato.
- 7.35: Loop card is a multi-currency card that allows you to spend money in different currencies, and one of those currencies is the US dollar.
- 8.10: We allow you collect your money in the US dollars that you can keep as US dollar revenue in USD and then you can use your loop cards to go and spend those US dollars for your expenses in USD, says Cato.
- 9.32: When people encounter the problem, they can go to go to your website, set up an account, get a card and deal with all their American currency build business needs on one end of the border and then bring it back over whatever is left over.
- 11.38: The four products we have are multicurrency accounts product, multicurrency card product, our payments product and then we also have capital product, says Cato.
3 Key Points:
- In the pandemic companies were thinking to go into local bank branch to get them to open a US account but bank told them, we have a branch in the US however, to open up this account, you are going to need to drive to our nearest branch in the US, says Cato.
- Cato talks about a multicurrency card. He explains how that works and how it ties into your account.
- We call ourselves kind of a bundle banking platform and the reason we use that terminology is we kind of try to do everything in one place. We try to make all the different products and services that a company needs available to them through Loop, says Cato.
Tweetable Quotes:
- “Canadian companies do not set up to get their domestic branches to basically be foreign branches of American banks.” – Jason
- “We allow you to collect through US dollar revenue and if you need to make $50,000 wire payment, we can convert the money to RMB for you and allow you to wire that money to anywhere in the world.” - Cato
Resources Mentioned:
Full Transcript
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