It is no secret that the five largest chartered Canadian banks dominate the market and have 149 years of history behind them. Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, and Canadian Imperial Bank of Commerce are a few of these banks and it is no wonder that they carry a dominant market share. This traditional banking experience works well for a lot of Canadians, providing the safety and security that comes with these long term financial institutions.
However, new digital technologies are bringing about changes in many aspects of our lives, and banking is no exception. Neo Financial is a Canadian fintech startup attempting to compete with the big chartered banks with innovative financial products. These cutting-edge products use technology and valuable customer data to create an easy, convenient, and unique banking experience tailored to the needs of modern consumers.
Neo Financial is offering their “Neo Account” which is much more than your traditional current or savings account. It offers no monthly fees, no overdraft fees, no transaction fees, and no other hidden costs. You will only ever be charged an ABS-regulated 1.5% handling fee for returned or non-sufficient funds. Their state-of-the-art mobile application allows customers complete control and visibility over their finances. The Neo credit cards account features real-time, easy-to-read spending reports, adding the advantage of giving users better control of their budget. Live chat customer service is also at customers’ disposal right through the application.
Neo Financial is launching a new product – their ID verification feature. New customers will be able to link their driver’s license, passport, or provincial identification to their account. Verified customers will be able to make secure mobile payments with their smartphone as well as purchases online, on any desktop or laptop. The other traditional banks in Canada have similar ID verification technology, but Neo Financial offers a much faster and secure signup.
In addition, Neo Financial’s Debit Access Card will provide customers with access to cash from any ATM. They can make MasterCard payments and transfers to other Neo Financial customers as well as third-party financial services Sending or receiving money is just as easy as a tap and is straightforward and accepted by most merchants. Plus, payments made using the Neo Financial debit card are insured up to $100,000.
Neo Financial’s savings account also provides customers with an incomparable benefits; great interest rates, no minimum balance requirement, no limits on deposits, and a real time budget control. Spoiling yourself with small luxuries every now and then could be rewarding, but financial discipline is also important. The savings accelerator feature optimizes customers’ savings by automatically transferring available cash into customers’ savings balance.
Overall, it is clear that the big banks still dominate the majority of Canadians’ banking experience, but Neo Financial is making a compelling argument against traditional banks with these innovative financial products. We all have different needs and Neo Financial is providing customers with a flexible, secure, and easy-to-use platform that meets these needs. There is no doubt that they will continue to offer unique offerings that challenge the traditional banks in the future.