Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
In a care[...]
Canada Post Expands into Financial Services with KOHO
Fintech Partnership | Nov 11, 2024
Image courtesy of AI
Canada Post and KOHO Team Up to Bring Banking Services to Underserved Canadians
Canada Post and KOHO, a Canadian fintech company, are teaming up to offer basic banking services across Canada. This aim of the partnership is to bring KOHO's chequing and savings accounts, prepaid Mastercard, mobile app access, and financial tools to more people, especially those in remote or underserved areas. According to recent data, 15% of Canadians are still underserved by traditional financial institutions.
See: KOHO Secures $190M to Move Towards Banking Power
Canada Post can use its network of over 6000 locations coast to coast to improve banking services to those who might struggle to reach a traditional bank. Other countries are seeing similar trends, as postal services look to provide financial options for those who need them most. The United States Postal Service (USPS) began a pilot project in 2021 offering limited check cashing services at some locations to help people who don't have access to a bank account.
Canada Post Looks to Diversify into Financial Services
Canada Post has been under financial pressure in recent years with rising operational costs and declining traditional 'snail mail' volumes because of the onslaught of digitalization. In Canada Post's 2023 annual report, they reported a pre-tax loss of $748 million up from $548 million the previous year. Back in 2021, Canada Post announced 'A Stronger Canada - Delivered' plan which focused on diversifying revenue streams to better serve Canadians which included expanding into financial services.
See: How Fintechs Are Tackling Financial Inclusion in Canada
In 2021, Canada Post partnered with TD to launch a personal loan pilot called 'MyMoney' but it was soon paused due to 'processing times' and then officially closed down with the reason being attributed to 'misuse by consumers' attempting to exploit the new offering.
Why This Partnership Matters
The postal network is trusted and offers a vast network of outlets across the country. For the 15% of Canadians who are underserved by traditional banking options, the KOHO partnership could be a key lifeline with modern financial tools to help them access and manage their money without relying on banking institutions. In a country as big as Canada where many communities are 'underserved' in some capacity, it simply makes great sense to combine financial technology with Canada Post's infrastructure for a win-win.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
Support NCFA by Following us on Twitter!Follow @NCFACanada  |
Related Posts
Canadian Regulators Heading Different Directions on Equity Crowdfunding- The Complexities of Auditing Digital Assets
- Top Investors Advice To Prepare For The Next Decade
- China’s ICO Ban: A Full Translation of Regulator Remarks
- The Advantages of Working with Professionals To Bring Your Video Game to Life
- Saskatchewan, New Brunswick to join national securities regulator
Leave a Reply