Alternative Finances

Koho Banks $1M To Make Millennials Want To Bank

Koho, a Candian banking platform, closed a $1 million seed yesterday (May 28), according to a press release. This is great news for Canadian millennials, who are lucky to have a bank made just for them. Koho’s investor pool includes Joe Canavan, Ferst Capital, Hedgewood, Highline and Stanley Park Ventures.

The banking platform has partnered with a federal financial institution to offer customers a banking card but also a Web app and mobile app. Its Web and mobile features will enable Koho users to see where and how they are spending their money, set automatic savings goals, receive push notifications, share expenses with friends, set daily budgets and more. The 18 to 34 year olds will even be able to easily donate to a special cause.

“It’s really simple,” said Koho’s CEO Daniel Eberhard. “Canadians pay some of the highest bank fees in the world to some of the most profitable banks in the world. It’s a situation that is compounded because it’s often those with the least assets that pay the highest fees. We don’t think that is right.”

The noted investor and former CEO of Assante Wealth Management adds, “We are at a pivotal point in the history of financial services in Canada. Koho will undeniably lead the way in banking solutions for millennials and ultimately all Canadians. Their simple, transparent, low fee offering will change the way Canadians bank today and for generations to come.”

Founded by a team of proven entrepreneurs, Koho has been on a rapid growth curve since announcing its vision in December of 2014. It was named one of the 20 hottest startups in Canada, is advised by Gil Penchina (early investor to LinkedIn, PayPal, AngelList, Wealthfront), and recently won the Nasdaq NY Techday award for FinTech innovation.

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The pressure on banks to modernize their payments capabilities to support initiatives such as ISO 20022 and instant/real time payments has been exacerbated by the emergence of COVID-19 and the compelling need to quickly scale operations due to the rapid growth of contactless payments, and subsequent increase in digitization. Given this new normal, the need for agility and optimization across the payments processing value chain is imperative.