Canadian fintech firm, Koho, has fully launched its new smart spending account. The new account, targeted at millennials, is designed to assist consumers in managing their spending and saving patterns.
Koho users will receive a Visa card, as well as access to a mobile app that will include a range of features such as instant notifications when money is deposited or withdrawn, insights about spending behaviour, and the ability to set savings goals for which the app will automatically put money aside. In addition, customers will be able to make peer-to-peer payments to other Koho users at no cost, as well as pay bills with Bill Pay, make Interac e-Transfers and withdraw cash from ATMs. The mobile app is secured with Touch ID, while the card, if lost, can be locked via the app. A live chat service with a real person is available to support in case of issues. The app will only be available to Apple user initially, but is expected to be made available to Android device users in the future.
To develop its offering, Koho has formed a white label deal with Canadian bank the Peoples Trust Company and also has a partnership with Visa.
Whether this new offer is successful will depend largely on if Koho is able to attract consumers away from the major banks.
Whether this new offer is successful will depend largely on if Koho is able to attract consumers away from the major banks. Whether this is possible remains unknown, but with RFi Group data showing that younger consumers are already big users of mobile banking, with 63% of consumers aged 18 to 24 years old using mobile banking compared to just 10% of those who aged 55 years, a service that utilises this medium, such as that offered by Koho, is likely to prove popular.
Image source (header): Koho