TORONTO - s4story -- Toronto-based business banking startup Venn on Wednesday launched a high-interest feature for its Canadian and U.S.-dollar business operating accounts, aiming to boost yields at a time when most Canadian checking accounts earn just 0.01% to 0.05%.

"Businesses saw how high interest rates were, but only experienced those rates when taking out debt and never for their own balances," said Venn Co-Founder Ahmed Shafik. "You'd see companies sitting hundreds of thousands, or even millions, in operating accounts just because there was nowhere better to put it."

With more than 5,000 customers, Venn plays in a similar category to U.S-based business banking and expense management fintechs like Brex, Ramp, Rho and Mercury. Founded in 2021 and launched publicly in 2023, Venn began as a multi-currency account platform and has since expanded to offer corporate cards, invoicing, expense management tools, and accounting integrations.

Canadian businesses have long faced entrenched barriers (https://ncfacanada.org/canadas-smbs-deserve-better-banking-lessons-from-us-fintechs/?ref=thisweekinfintech.com) in the traditional banking system, including near-zero interest on deposits, high wire and foreign exchange fees, strict lending requirements, and outdated tools that lag behind what U.S. fintechs offer.

More on S For Story

• Luxury Mediterranean Estate in Gotha Sells for $1.52 Million, Closing $45,000 Over Asking
• ZEELOOL's Black Friday Sale Starts Early with Up to 80% Off Frames
• UV Weathering Test Chamber vs Xenon Arc Test Chamber: What's the Right Solution for Your Products
• Emeritus Addresses Hospital Bed Shortages with Smart Storage Solutions
• New Book "24 Hours to Vitality" Helps Men Reclaim Energy, Strength, and Confidence at Any Age

With high-interest accounts that offer a 2% yield, Venn aims to offer more flexibility than high-yield vehicles such as guaranteed investment certificates, the Canadian equivalent of certificates of deposit. The offering could "return thousands of dollars annually to the average business," said Shafik.

With the high-yield business account, Venn "solves a real gap for Canadian businesses who haven't had a place to earn on their operating balances without losing access," said Dan Ahrens, co-founder and managing partner at Left Lane Capital, an investor in the company. Venn raised (https://www.venn.ca/resources/venn-series-a?utm_campaign=interest_launch&utm_source=article&utm_content=thisweekinfintech) $21.5 million in Series A funding earlier this year, led by Left Lane with participation from XYZ Venture Capital, Intact Ventures and Gradient Ventures.

More on S For Story

• London Based Author Buppha Witt Launches Her Powerful Memoir to Explore A Universal Theme of Privacy
• Fulton County & Grow Your World Amplify Atlanta Youth Through the Youth Audio Collective
• 2026 Oscars Betting Odds: One Battle After Another Favored for Best Picture
• Allen Field Co., Inc. Components Selected for Esko ArtiosCAD 3D Component Library
• New Children's Book "You Can Do Hard Things" Inspires Courage and Resilience in Young Readers

Working toward a full-stack banking and expense platform for businesses

Venn has two priorities as it expands its offerings: deepening its product suite to serve a broader range of business customers, and exploring new verticals such as credit and payroll.

"We went pretty broad for the SMB segment, and as you move to mid market and enterprise, the feature set needs to go a lot deeper to service more complicated use cases," said Shafik. "There's different use cases that companies are still using other fintechs or platforms for. How can we solve that as well to gain both the relationship but also actually make it 10 times better and 10 times cheaper?"

To learn more visit: https://www.venn.ca/