Canadian neobank Koho has struck a deal with Visa as it gears up for a launch early next year, taking on the country's big five providers in the battle for Generation Y.
With a particular focus on 18 to 34 year olds, Koho aims to launch within two months, promising to offer a better service than traditional banks, more suited to the digital age and with fewer and more transparent fees.
Having raised $1 million in funding, the Vancouver-based startup has now teamed up with Visa on a prepaid card for customers, which will be issued by Peoples Trust Company, the chartered financial institution which will hold funds on Koho's behalf. Payment processor Galileo has also been brought onboard.
Koho'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 of the highest fees in the world to a big five that made $29 billion in profits last year.
“We think Canadian consumers need to raise their expectations. It’s not just about core functionality, it’s about understanding your financial position and providing the tools to help you improve it. Whether you're saving for travel, a dog or a house, Koho can help you get there faster," says CEO Daniel Eberhard.