New neo-bank Koho targets Canada's Generation Y

A Simple-esque digital neo-bank is launching in Canada, promising to take on the country's big five providers and win over Generation Y.

  13 7 comments

New neo-bank Koho targets Canada's Generation Y

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Describing itself as a technology company, not a bank, Koho provides a front end of services while a Cudic-compliant credit union holds customers' cash.



The firm's founders, who come from tech startup backgrounds, say that they launched the outfit because Canadians have to endure antiquated banking practices while still paying some the highest fees in the world to a big five that made $29 billion in profits last year.

With a particular focus on 18 to 34 year olds, Koho is promising to offer a better service more suited to the digital age and with fewer and more transparent fees.

Customers get a "pre-paid credit card" and access to a website and mobile app that let them do "pretty much everything" that they can do with normal bank accounts, with the exception of wire transfers.

Like Simple and Moven, the firm makes much of its ability to harness the huge amounts of data customers generate to help them better manage their money with saving goals, insights and filters. Meanwhile, a custom affinity programme lets customers pick good causes to support.

Canadians are now being invited to join the waitlist for early access to the service.

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Comments: (7)

A Finextra member 

Only 29 "million in profits" ..... They would be broke LOL

A Finextra member 

Thanks for correction to 29 Billion , that's more like it for CND FY's .....

Matt White

Matt White North America editor at Finextra

Oops. That should, of course, be $29 billion.

A Finextra member 

Are they planning on doing online property conveyancing as well? https://www.pexa.com.au/news/article/australia-world-leaders-in-online-property-settlement/160#.VHQvqPNjI3M.linkedin 

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

"pre-paid credit card". Typo? Or does the 18-34 y.o target segment really fall for oxymorons like that?

A Finextra member 

Agree with Ketharaman. Amazing how often I see the nonsensical term "prepaid credit card" in what purports to be serious discussions of payment cards. Gotta wonder about a company that does not know how to describe its own offerings.

A Finextra member 

Well - it's not a credit card as there's no credit being granted.  And it's not a debit card running on the Interac network. So...

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