Tired of paying a fee for every little thing you do with your credit card and debit card? Sick of big financial institutions charging you hidden fees that just don’t make sense? Meet Koho, a Fintech in Vancouver who offers a prepaid card solution — without all the exorbitant charges. Part of Koho’s philosophy is to charge as few fees as possible; they don’t believe in profiting from fees and confusion. As a matter of fact, they’re working to end fees once and for all.
Another core value at Koho is security and trust. That’s why they work with reliable partners, Visa and Peoples Trust. The money loaded onto your Visa prepaid card is held at a regulated federal financial institution while Visa’s Zero Liability Protection provides extra security against fraudulent use.
Koho’s app is simple and easy to use, while offering a variety of functions to better help you manage your financial life. You can transfer money, set up goals for savings, and automate bills right from your phone. Most recently, they have added a new categories feature which helps you get a clearer idea of where your spending is going.
We interviewed Koho’s CEO, Daniel Eberhard, to learn more about their goals, thoughts on the current regulatory environment, and Canada.
Trulioo: What is the biggest problem that you are trying to help users solve?
Daniel: We're solving two problems. Banks make a lot of money from fees, a lot of which are confusing or difficult to understand. For example, to access 'No-fee' banking at most of Canada's banks, you typically need $3-5K dollars. That's actually just not an option for more than 60% of millennials. Those who have the least are paying the most in bank fees. We don't think that's right. Everybody should have access to the best financial tools.
Secondly, we use technology to remove the stress, uncertainty and frustration from managing our financial lives.
Trulioo: If you had a magic wand that could update regulations, what would you change?
Daniel: I actually don't think the regulations are unfair. If I could fix anything it would be more transparency in terms of what regulators are doing and how they are making decisions.
Trulioo: This last one is a two-part questions. We're proudly Canadian and love that Koho is the same. You are currently only servicing Canada — any particular reason why? Do you have any plans to expand into other regions in the future and if so, where would you say is Koho's biggest opportunity?
Daniel: We're 100% focused on Canada right not but we're definitely interested in other countries. Canada really needs this. A lot of Canadians aren't aware of this but Canadians pay some of the highest bank fees in the world. Being online, lean and technically driven, our cost structure is a lot better than a lot of the existing options. There are massive populations with growing financial needs and most banks can't figure out how to work with them. We think our infrastructure makes a lot of sense in those situations.
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