Toronto-based FinTech firm Koho hopes to bring everyoneâs money closer together with the launch of its refreshed joint accounts.
âWe know Canadians believe in sharing finances, but many havenât had the tools to do it easily.”
Daniel Eberhard, Koho
Koho first launched joint accounts in 2019, but has now refreshed them with a reward system. Users sharing their accounts can now accumulate 3.5 percent interest on their balances, up to 2 percent cash back on essentials, and 0.5 percent on all other purchases. The new joint accounts also carry no foreign transaction fees, free international ATM withdrawals, and existing, built-in budgeting tools like Roundup, Vault, and Goals.Â
Koho says the new joint account offering is a response to younger Canadians who are looking for tools to manage shared money while navigating affordability pressures. The company says 38 percent of its users report their shared expenses increasing over the past 12 to 24 months.
Citing a national survey conducted through the Angus Reid Forum, Koho says younger Canadians are also more open to non-traditional, shared finances. It notes that 13 percent of Gen Z who were polled were willing to share an account with a roommate, compared to less than five percent across older generations.
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âWe know Canadians believe in sharing finances, but many havenât had the tools to do it easily,â Koho CEO Daniel Eberhard said in a statement. âAs the cost of living goes up, joint accounts are helping people cover groceries and rent, as well as allowing them to pay bills, save for emergencies, or plan for the future.â
Koho joins other FinTech firms catching on to a new age of joint accounts. Earlier this year, Wealthsimple acquired the team behind San Francisco-based wealth management platform Plenty to aid in its expansion of products for couples and families, like joint accounts.
Founded in 2014, Koho has widened its services over the years to include a prepaid Mastercard, a line of credit offering, international money transfers, as well as credit history building and tenant insurance for renters. The company raised $190 million CAD in equity and debt last year to bolster its efforts in securing a Schedule 1 banking licence.
Disclosure: Wealthsimple vice-president of payments strategy and chief compliance officer, Hanna Zaidi, sits on BetaKitâs board of directors.
Feature image courtesy Koho.