The Canadian financial sector has undergone major transformations over the years, displaying adaptability and innovation potential. What lies at the core of these transformations is digitalization. Today, where the increasing digitalization of society is making data more accessible, the banking sector in Canada is leveraging it to boost transparency and enhance user experience.
Jeffrey J. Smith (co-founder and CEO) and Susan Anderson (co-founder and Chairwoman) saw the potential to take the sector a step ahead with their revolutionary idea–innovating banking-as-a-service products in Canada. In 2007, they established Digital Commerce Bank, or DC Bank that unleashed a new wave in digital banking with its technology-focused payment solutions. And the rest is history. Today, DC Bank continues to innovate in the payments space, fully embracing the digital future.
Recognizing Opportunities for Growth
DC Bank’s journey began with one of its founders managing a variety of businesses, including convenience stores and car washes on Vancouver Island. Recognizing opportunities for growth, they introduced new services like restaurants and propane stations to increase revenue. In the mid-90s, they identified the potential of ATMs, noticing a significant boost in sales for stores equipped with the machines.
After sourcing affordable ATMs from the U.S.,they launched Direct Cash Payments in 1997, expanding ATM installations across Canada. This venture, DC ATM, grew to become the second-largest ATM network globally. To further support operations, the company later expanded into prepaid cards and established DC Bank, which has since evolved into a leading provider of digital payment services, generating over $80 million in revenue.
Since its founding in 2007, DC Bank has focused on delivering seamless, innovative payments and banking-as-a-service solutions tailored to client needs. Its growth is largely driven by a commitment to technology, allowing the company to offer a broad range of payment services, including Visa and MasterCard issuing, e-transfer payments, and other digital solutions suited to today’s business environment.
DC Bank’s success is rooted in its ability to anticipate financial industry trends and adjust accordingly. By prioritizing in-house transaction processing and leveraging technology to enhance operations, the company has maintained its position as a forward-thinking partner for businesses looking to improve their digital payment systems. From its early days to its current status as a leader in digital payments, DC Bank has been driven by an entrepreneurial spirit that seeks to solve problems through innovation. With this mindset, the company continues to embrace and drive the digital future of payments.
Triumphing Challenges to Scale Success
For DC Bank, people have always been its most valuable resource, but managing this resource has been one of its greatest challenges. As the company grew from a small business to a major player in the financial sector, the complexity of managing talent also increased. In the early stages, the company required just a few employees, but as it expanded to 50 and now over 100 team members, different skills became essential. One of the key challenges was recognizing when specific expertise was missing and ensuring the right individuals were hired to fill those roles.
DC Bank understands that building a strong team goes beyond hiring; it’s about placing the right people in the right positions. During its expansion, the company learned that while hiring itself is important, the real challenge lies in identifying where each person can make the most significant impact. This required a process of gaining experience, practicing patience, and learning from any missteps along the way.
Another challenge for DC Bank was maintaining focus in a fast-paced industry. The business world constantly presented new opportunities, making it difficult to decide which ones to pursue. The company recognized the importance of carefully selecting which opportunities aligned with its long-term goals, avoiding distractions that could spread resources too thin. “One of the keys to success is staying focused on your objectives,” says Jeff, advising, “It’s tempting to pursue every opportunity, but you need to know which ones to go after and when to stick to your plan.”
Furthermore, DC Bank recognized the fast-moving nature of technology and its importance in maintaining business continuity. During the COVID pandemic, it had to quickly transition its workforce to remote operations, equipping employees with laptops and ensuring they had secure remote access almost overnight. Staying ahead of the curve became essential not only for serving customers but also for supporting its team. The company’s ability to respond quickly and effectively depended on how up-to-date its systems were, reinforcing the need for ongoing technological advancements to remain agile and competitive in a dynamic environment.
The Strength of Teamwork
DC Bank’s achievements are not the result of one individual but a collective effort. With a team of over 100 employees, each contributing to the company’s vision, DC Bank’s growth has been built on collaboration and shared expertise. The company values its employees as the core resource in delivering exceptional customer service and developing innovative products that meet the needs of its clients.
The leadership at DC Bank believes that the key to success lies in finding the right talent and fostering a work environment that encourages growth, learning, and innovation. The company’s approach to team building is centered on aligning individual strengths with the needs of the business, ensuring that every team member contributes to the company’s overall objectives.
Over the years, DC Bank’s leadership has been anchored by a few core principles that have guided them in building the company and establishing their team. At the core, they are leading by example, setting high expectations, making the work ‘interesting’, and fosters clear communication by encouraging their team to challenge ideas. They believe that leading by example, maintaining high standards, and creating an engaging atmosphere would inspire those around them to reach their fullest potential.
The Perfect Equilibrium of Risk and Innovation
DC Bank’s approach to business is built on constant vigilance, ensuring that all potential risks are accounted for in an ever-changing environment. The company likens this to defending a medieval castle, where strong defenses must be built, particularly in the digital world. Protection goes beyond just physical or cybersecurity—it involves safeguarding all aspects of the business, including assets, customer data, and intellectual property. DC Bank believes in preparing for worst-case scenarios, anticipating risks before they arise, and ensuring that vulnerabilities are addressed proactively.
In an industry as fast-paced as banking, challenges are inevitable, but DC Bank has thrived by staying focused on its goals and maintaining a clear strategy. One of the company’s greatest strengths is its ability to balance innovation with risk management. By constantly evolving its technology and services, DC Bank ensures that it meets the demands of the market while protecting its business and clients from potential vulnerabilities.
This focus on security, particularly in the digital space, has been crucial to the company’s success. DC Bank has implemented advanced cybersecurity measures to safeguard customer data and ensure the integrity of its services. By anticipating potential risks and addressing them proactively, the company is well-equipped to handle the challenges of the modern financial landscape.
Taking DC Bank to the Top, One Step at a Time
DC Bank’s success, as the executives elaborate, comes down to three key factors:
- Its products meet the market’s needs, and the market responds positively to what it offers.
- Technology is continuously evolving. What was relevant last week, a year ago, or two years ago has shifted as customers’ needs change, and the company keeps pace with those changes.
- The most significant factor contributing to the company’s success is its people. They listen closely to customers, striving to understand their businesses. It’s not just about fulfilling customer requests—it’s about understanding why customers need things a certain way and looking for other opportunities to help them. While customers may not always understand the company’s internal workings, by understanding their needs deeply, the company can innovate on their behalf, providing solutions that go beyond just the contractual obligations. This focus on delivering value builds long-term relationships with customers, making the company more than just a service provider—it’s a trusted partner.
As DC Bank continues to grow, its commitment to innovation and customer satisfaction remains at the forefront of its mission. The company is currently focused on expanding its core offerings in payment processing and leveraging new technologies like AI and data analytics to improve fraud detection and enhance service delivery. With a clear vision and a dedicated team, DC Bank is well-positioned to continue leading the digital transformation of the Canadian financial sector.
At DC Bank, the goal is not just to serve customers but to build long-term partnerships by understanding their needs and providing value beyond traditional banking services. This customer-centric approach, combined with a focus on technological advancement, ensures that the company will remain a key player in the industry for years to come.
With that being said, DC Bank’s approach to business centers on steady growth and dedicated customer service. Leadership at the company believes that the company’s existing products are expanding, and it’s crucial to focus on serving those loyal customers. “I don’t want to dilute my efforts by spreading too thin,” Smith explains. Their focus is on enhancing the company’s payment services, particularly around card products, including virtual card issuing, while also improving technology for quicker, better service.
Making a Positive Impact in the Community
The executives and team at DC Bank it’s made up of a dedicated group working together toward a common goal. Their shared vision is to create a business that lasts, one that leaves a positive legacy by providing jobs and opportunities for the future. Following this morale, DC Bank’s charitable efforts have shifted over the years. Instead of sponsoring golf tournaments and local teams, it focuses on something more impactful: providing bicycles for financially disadvantaged children in Canada through an organization they founded called My First Bicycle.
In the past year, My First Bicycle has donated 1,500 bicycles, and this year, they aim to reach 2,000. “We realized that sponsoring a tournament wasn’t as meaningful as giving a child a bike,” Jeff explains. For Jeff, a bike represents freedom and joy. He fondly recalls the excitement of getting his first bike and the sense of independence it gave him. “I thought I was God,” he laughs, remembering how it felt to ride instead of walk. This initiative brings not only joy to the children but also fulfillment to the staff.
The company builds the bikes right in its office, receiving shipments directly from China and customizing them with a special brand. Each bike comes with a helmet, a kickstand, and a lock, ensuring that the children are not only excited but also safe. Through these efforts, DC Bank aims to create a business that continually invests in its community. The company’s commitment to making a difference is clear, and the entire team finds great satisfaction in knowing that the company can help provide freedom and happiness to children, one bike at a time.
As a seasoned leader, Jeff advises: “I advise young leaders to stay focused, find their niche, and work hard. If you think you’re working hard, double your efforts. Surround yourself with people you enjoy working with, and together you’ll achieve more. But remember, hard work is tougher than it seems, and nothing comes easy.”
