The new proposal is aimed at young Canadians who face affordability challenges through cost-sharing.
Toronto-based fintech company Koho is hoping to bring everyone's money closer together with the launch of revamped joint accounts.
“We know Canadians believe in sharing finances, but many don't have the tools to do so easily.”
Daniel Eberhard, Coho
Select first launched joint accounts in 2019, but has now updated them with a reward system. Users sharing their accounts can now earn 3.5 percent interest on their balance, up to 2 percent cashback on essentials, and 0.5 percent on all other purchases. The new joint accounts also come with no international transaction fees, free international ATM withdrawals, and existing built-in budgeting tools such as Round, SafeAnd Goals.
Coho says the new joint account offering is a response to young Canadians looking for tools to manage shared money while overcoming affordability challenges. The company says 38 percent of its users report that their overall spending has increased over the past 12 to 24 months.
Citing a national survey conducted through the Angus Reid Forum, Coho says younger Canadians are also more open to non-traditional general finance. It notes that 13 percent of Gen Z surveyed were willing to share an account with a roommate, compared to less than five percent among older generations.
CONNECTED: Koho continues to expand beyond core banking by launching international money transfers
“We know Canadians believe in sharing finances, but many don’t have the tools to do so easily,” Koho CEO Daniel Eberhard said in a statement. “As the cost of living rises, joint accounts help people pay for groceries and rent, while also allowing them to pay bills, save for emergencies, or plan for the future.”
Koho joins other fintech companies pushing for a new era of shared accounts. Earlier this year Wealthsimple acquired a team behind San Francisco-based wealth management platform Plenty to help expand products for couples and families, such as joint accounts.
Founded in 2014, Koho has expanded its services over the years to include prepaid Mastercards, credit line offer, international money transfersand also building a credit history and renters insurance for renters. Company raised $190 million CAD in the equity and debt sector last year to intensify its efforts to obtain a Schedule 1 banking license.
Disclosure: Hannah Zaidi, Wealthsimple's Vice President of Payments Strategy and Chief Compliance Officer, serves as BetaKit Board of Directors.
Image courtesy of Coho.
