Koho, a Canadian Fintech, says it is moving forward with its pursuit of a banking license.
According to a note from the firm, Koho has entered the “next phase” of securing approval from regulators.
Koho currently offers a spending and savings account and an integrated app. Koho partners with different banks and federally regulated financial institutions to deliver their services. A banking license will mena the company will be able to go it alone.
Koho is a subscription based provider offering 3% interest on your account balances but 5% if you pay a $4 a month fee. You may also receive a Mastercard with at least a 1% cash back on charges. The savings are held at Peoples Trust. The neobank is targeting incumbents with competitive services. Koho publishes a list of forthcoming services – as well as ones it is currently considering.
Koho CEO Daniel Eberhard says the banking license is a crucial next step if they want to build the best products in he country. The company has hired Peter Aceto, former CEO of Tangering Bank (ING Direct) to aid in the banking license application.