Vault Review: The Answer to Your Business Banking Woes?

Do you feel lost and overlooked by the banking giants? I see you over there, nodding so hard your head might fall off. Vault is Canada’s newest fintech attempting to shake up the business banking experience. But does it live up to the hype of solving all your modern banking pain points? Let’s dive into the innovative features offered by Vault to find out if it’s the right fit for your SMB. 

What is Vault?

Vault is an all-in-one digital financial platform tailored specifically for Canadian small-to-medium-sized businesses (SMBs) operating both domestically and globally. It provides a comprehensive suite of tools for managing money efficiently while sidestepping expensive bank fees and outdated processes.

With features ranging from multi-currency accounts to corporate cards and simple investment options, Vault aims to be the go-to digital banking solution for Canadian SMBs. The platform’s robust infrastructure and partnerships want to ensure that you can seamlessly and securely optimize all your business banking needs. 

The Vault origin story

Vault kicked off in 2021, right in the middle of the COVID-19 chaos. The brainchild of Saud Aziz and Ahmed Shafika, the platform is designed to simplify and modernize your business banking experience. So far, Vault has raised a cool CAD $5,000,000 in funding with some major tech honchos backing it, like the CEOs and cofounders of PayPal, Revolut, and Robinhood (to name a few). 

It’s no wonder they’ve made waves. But what really touches the heart? Saud and Ahmed’s firsthand experience watching their parents navigate the convoluted and underserved world of business banking. Sorry Marlon Brando – it’s not just business, it’s personal.  

Is Vault legit? 

Vault is registered with FINTRAC as a money services business, ensuring it adheres to stringent financial standards and protocols. You can verify this for yourself with their registration number M22941967. Eligible deposits in your Vault account are protected by the Canada Deposit Insurance Corporation (CDIC), which offers an added layer of security for your funds. 

However, as with any emerging fintech, there’s a degree of uncertainty. While Vault promises innovation and disruption in the banking sector, it’s still a relatively new kid on the block. That makes their long-term success a little harder to predict.

Vault features & services

Vault offers a suite of features to help your businesses thrive in the digital age and expand across borders. From multi-currency accounts to innovative corporate cards, Vault offers a one-stop solution for companies seeking to optimize their financial operations.

Multi-currency Accounts

Sick of inconvenient branch visits and long lines? Vault allows you to skip the trip and open multi-currency accounts online in as little as 5 minutes – for free! Access CAD, USD, GBP, and EUR currency accounts right from the comfort of your office or home.

And these accounts aren’t just for holding multiple currencies. When you’re dealing with international vendors or getting payments from customers around the world, Vault ensures the process is as smooth and hassle-free as if you were doing business with locals.

You can create unlimited sub-accounts for each currency, receive ACH payments, and convert currencies instantly at competitive foreign exchange rates. No matter what currency account you open, or how many you open, you don’t have to worry about monthly fees or overdraft fees because there are none. 

Corporate Cards

Annual fee: $0
Physical cards: 1 free per user, $10 per additional card
Virtual cards: Free & unlimited 
Rewards: 1% cash back 

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The Vault corporate card provides a simple way to streamline spend management while earning 1% cash back on eligible purchases across all cards. Each user gets one free physical card, but you can create an unlimited amount of virtual cards for free. 

With this business credit card, you can set custom spending limits on specific cards for employees or vendors. And you can even block transactions from certain merchants or purchase categories. 

Travelling or paying for services from another country? Vault uses smart routing technology to pair each card transaction with its corresponding currency account to help you sidestep those pricey foreign transaction fees.

Bank Transfers

Vault offers a great solution to those slow, clunky, and expensive global money transfers. All your payments, whether local or international, can now be executed quickly and at a fraction of the cost of traditional bank transfers. You can receive domestic payments through EFT or cross-border transfers using tools like ACH, SEPA, or Swift Wires with no hidden fees. 

In fact, the only fees you will pay are international wires and converting Canadian dollars into one of the three supported foreign currencies: USD, GBP, EUR. Remember, ‘multi-currency’ isn’t just jargon here, it’s a functional reality that streamlines your global business transactions.

Investments

Vault also offers a gateway to boost your business savings with GICs. Now you can stash away your excess cash with peace of mind knowing your eligible investments are protected by the CDIC.

Their GIC terms range from 30 days to 5 years with interest rates ranging from 2.4% – 5.25%. Essentially, Vault combines the benefit of guaranteed returns with the assurance of security, making it a winning choice for forward-thinking businesses.

Vault integrates with popular accounting software

In today’s fast-paced business environment, having seamless financial operations is crucial. Vault recognizes this need and bridges the gap between modern banking and accounting. Here’s how integrating Vault with accounting platforms like QuickBooks and Xero can make a world of difference for your business:

Streamlined Financial Management

With the integration, you no longer need to juggle between Vault and your accounting software. Transactions from Vault are reflected directly in the accounting platform’s dashboard. This means less manual data entry, reduced errors, and more time saved.

Real-Time Transaction Updates

Whether it’s an account load, a card purchase, or a currency conversion, Vault provides 6 primary transaction types that seamlessly sync with your accounting system. This ensures that your bookkeeping is always up-to-date and accurate.

Effortless Vendor Management

Vault simplifies the vendor management process. When a new outbound or inbound transaction happens that doesn’t match an existing vendor in your accounting system, Vault automatically creates one. Plus, it’s currency-specific. So, if you deal with Amazon in both Canada and the US, you’ll have distinct vendors like “Amazon – CAD” and “Amazon – USD” to precisely reflect and record transactions.

Easy Reconciliation

Reconciling accounts is a total pain in the ass. But with Vault’s integration, the historical transactions you see in Vault’s Accounting tab match up with what’s in QuickBooks or Xero. If you’ve already synced transactions directly in your accounting software earlier, you can conveniently exclude them on Vault’s side. This ensures there’s no duplication, making reconciliation a breeze.

Greater Financial Visibility

By having Vault’s multi-currency features aligned with your accounting software, you gain clearer insights into your business’s financial operations. This transparency across various currencies and transactions helps you make faster and better-informed decisions. 

Stay Audit-Ready

With every transaction accounted for and no manual entries to potentially mess up, businesses can be more confident come audit time. Everything’s documented, synchronized, and stored, ensuring compliance and easier audits.

Can any business bank with Vault? 

Unfortunately, no. To bank with Vault,  there are certain criteria your business needs to meet. Currently, Vault is designed to exclusively support Canadian corporations. If your business falls under a sole proprietorship, partnership, or your business is in Quebec, then Vault’s platform is not accessible to you right now. 

Having said that, Vault has a clear focus on helping corporations across Canada and is working to expand their scope in the future. But as of now, their services are exclusively available to Canadian corporations, except for those operating in Quebec. 

The pros & cons of using Vault

 As with any financial platform, Vault brings a mix of advantages that may align perfectly with some SMBs and certain drawbacks that might give others pause. Here’s what to consider before signing up to Vault: 

Pros:

Cost Savings: Vault offers free accounts, many free transactions, and competitive FX rates. Vault also integrates with QuickBooks and Xero to save time and money reconciling the books. 

Convenience: In just five minutes, you’re in. No long queues, no tedious paperwork to deal with.

Multi-currency Accounts: Vault opens the door to seamless transactions across major currencies like CAD, USD, GBP, and EUR without the need for multiple bank accounts.

Corporate Cards with Benefits: Not only do you earn 1% cash back, but cards can be tailored with custom spending limits for better control over expenses. 

Efficient Bank Transfers: With both local and international transfer options available for free, Vault ensures payments and transactions are smooth.

Guaranteed Investment Returns: With GICs offering returns as high as 5% and the added assurance of CDIC insurance, Vault stands out as an attractive option for SMBs wanting to grow their savings.

Cons: 

Only Available to Canadian Corporations: Businesses that are not incorporated cannot take advantage of Vault’s offerings. This can be limiting for sole proprietors, who remain underserved by the Canadian business banking system. 

Not Available in Quebec: For SMBs in Quebec, this is a considerable drawback.

Limited Currencies: Only four for now. If you’re dealing in other currencies, this might pinch a bit.

Advertised GIC Returns: That 5% looks enticing, but you have to tie up your money for 2 years to get it. Shorter terms come with lower rates starting at 2.4%. 

Physical Presence: Some folks like the old-school feel of a brick-and-mortar bank. Vault, being all-digital, might not tick that box.

Young Fintech Risks: As a relatively new entrant in the fintech world, there might be concerns about longevity and possible growing pains. Even with the promise of modern features, new platforms may encounter hiccups or unforeseen challenges.

Vault is best suited for…

The digital banking space can be tough to navigate, but Vault seems to resonate deeply with certain business profiles. So, who’s the ideal candidate that will benefit the most from banking with Vault? 

Global Hustlers

Incorporated SMBs with operations that stretch beyond Canada’s borders will find value in Vault. If your dealings frequently involve CAD, USD, GBP, or EUR, Vault is particularly designed to iron out those currency kinks.

eCommerce Businesses

Online businesses that cater to an international clientele will benefit immensely. Vault’s multi-currency features mean you can accept payments seamlessly and without those irritating conversion fees.

Start-ups & Tech Companies

Remote-first companies that have a distributed team or deal with international vendors will find Vault’s suite of services invaluable. Real-time currency exchange and free international transfers can be game-changers.

Traditional SMBs Looking for Modern Solutions

If you’re a brick-and-mortar business but tired of the traditional banking rigmarole, Vault can be your onramp to modern, efficient banking. You can ditch those long branch queues and embrace instant online account setup and management from an intuitive all-in-one platform. 

Is Vault right for my business?

Vault is staking its claim in the SMB banking arena, flaunting a blend of modern features, a user-centric approach, and promising potential. For the globally-minded Canadian SMB, Vault could very well be the banking breath of fresh air you’ve been waiting for. So if you’re struggling to thrive in today’s economic climate, but your current banking partner won’t give you a leg-up, it’s time to explore other options. 

Reflect on your business needs, your global aspirations, and the value of an integrated banking and accounting solution. Vault is ideal for the modern entrepreneur who’s tired of hidden fees and wants a holistic banking experience without stepping foot in a branch.