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 Launches Postal Banking With KOHO
Fintech Partnership | March 20, 2025
Image: Freepik/rawpixel.com
Canada Post and KOHO Team Up to Improve Access to Financial Services Across the Country
On March 17 2025, Canada Post announced the launch of MyMoney Account, a digital-first banking option developed in partnership with Canadian fintech company KOHO. This initiative aims to improve access to essential banking services for individuals in rural, remote, and underserved communities who may not have easy access to traditional banking services.
What is the MyMoney Account?
The MyMoney Account is a spending and savings account managed through the KOHO app. It offers leading interest rates on all balances, up to 2% cash back on purchases like groceries and transportation, and tools to help build credit and improve financial resilience. The account includes both no-fee and low-fee options, and users can deposit cash at over 6,000 Canada Post locations.
See: Canada Post Expands into Financial Services with KOHO
It's a hybrid model that combines KOHO’s digital tools with Canada Post’s extensive physical network, which allows users to manage their finances without relying only on traditional bank branches (which are declining in numbers, especially in rural areas).
Why This Partnership Makes Sense
According to research highlighted by Prosper Canada, about 15% of Canadians are still considered 'underbanked'. That's close to 5 million Canadians who have limited or no access to financial services provided by the traditional banking sector. They also often come from low to moderate income backgrounds, facing challenges of low credit scores, high credit card fees/debt, and non-sufficient funds fees, so a friendly partnership that offers access to convenient, competitive, and modern banking services can really make a difference to those in need who are shut out from the banks, or find themselves dependent on costly/predatory payday lenders.
Beyond financial inclusion, it's a strategic move for Canada Post who lost $748 million in 2023 due to declining mail volumes. Expanding into financial services supports underserved Canadians but it also creates a new revenue stream for the company, helping them stay relevant in a modern times.
See: How Fintechs Are Tackling Financial Inclusion in Canada
KOHO on the other hand, benefits from a national distribution network, allowing them to reach new customers who may not typically use digital-first fintech products.
Postal banking has proven to be successful in many countries like France, Germany, Japan, China, India, and New Zealand, and play important roles in advancing financial inclusion.
Conclusion
Another one to watch, and hopefully a win-win for Canada Post and KOHO who are partnering in a practical way to bring affordable banking to those left out by the banks (aka unbanked and underserved Canadians).
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
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