Last year, Canadian banks made $29 Billion in profit, while paying out over $10 Billion in executive bonuses.
Meanwhile, as consumers Canadians pay some of the highest bank fees in the world, many of which are hidden, while having to deal with technologies and experiences that leave us confused and frustrated instead of empowered.
Enter Koho. A new way to bank in Canada that is targeting Generation Y and humanizing the relationship between banks and their customers.
Koho is a replacement for your current bank account and simply consists of a debit card, a web app, and a mobile app.
Your Koho account works the same way as your old bank account.
You can have your paycheque deposited directly into your Koho account, transfer money with e-transfers, pay your bills, etc. Your Koho Card works just like a debit card, except the payments are processed by a credit card company, so it’s a prepaid credit card.
And Koho has partnered with an ATM network to give you access to thousands of bank machines across Canada.
But Koho also do a bunch of things your bank doesn’t, like goal-setting, budgets, spending insights, and a nifty available-to-spend balance feature that prevents overspending.
How does Koho make money?
Koho explains: “Every time you swipe your card, a portion of your purchase goes towards what is called interchange. This is usually about 1.5% of the total amount of your purchase, which we get to keep. This is paid by the merchant who processes the payment and is something they pay regardless of whose card they are using. This also means that we make money when you spend money, which is why we have to deliver an excellent product to you.”
Is your money safe? According to Koho CEO Daniel Eberhard, very. Koho has partnered with a yet to be announced CUDIC compliant Credit Union in Ontario who holds your hard earned cash for you.
Co-founded by Eberhard, Jonathan Bixby, Joshua Bixby, and Mike Benna, Koho has been seed funded by Stanley Park Ventures.
Koho is the first startup to emerge from Stanley Park Ventures’ foundry which turns great ideas into profitable companies. As co-founders, Stanley Park Ventures works closely with entrepreneurs, providing them with “vetted ideas and a proven playbook for execution.”