New BankingDecember 15, 2014 at 11:55 am | Posted in Economoney, Internet, Online services, Security, Software, Technology, Web Apps | 1 Comment
There is a new service developing in Canada called Koho. They’re a “technology company delivering a banking experience” rather than being a bank. Yet the money is deposited with a credit union, so is secured and insured in the usual way.
They use a debit-style prepaid credit card, processed through a credit union. But unlike cards like the BMO one I discussed here, this one will have no fees. (other than for things like cheque processing) They’ll use the standard merchant transaction fees to support the business, much as Interac does.
They’ll also donate to chosen causes from your transaction activity automatically. It’s targeting young people with web and mobile apps for saving and managing money. They describe it like Mint, but with the functionality built into your account.
If you’re used to a full-service bank, it may not be your style. But if you have an active life that is technology-supported, it may be a big improvement. They suggest they’ll be the most affordable banking in Canada.
Check out the FAQ page for details. Pretty interesting.
The only downside I can see is it means signing for transactions, unlike a true debit card. In fact, it cuts the non-profit Interac (debit) system out of the loop. But I’ve certainly found using a travel card much simplifies those kinds of transactions.