Canada's Koho hits unicorn status and targets banking license

Koho, a major player in the Canadian fintech space, has just secured $130 million in funding and achieved 'unicorn' status. This isn't just a win for the company; it’s a signal that they have the capital necessary to pursue a full federal banking license. For retailers and merchants, this move toward formal banking status is significant. It means Koho is positioning itself to offer more robust credit products, potentially at lower costs than traditional alternative lenders. Koho already offers credit-building tools and interest-earning accounts used by over 1.6 million Canadians. As they transition toward becoming a bank, their ability to provide integrated financing and credit solutions at the point of sale will likely expand. If you serve Canadian customers who are often overlooked by big banks—such as those looking to build credit or younger consumers—Koho's growth provides a more stable, well-funded partner for consumer financing. The influx of cash will be used to improve their technology stack and speed up product development, which usually translates to better app experiences and faster approvals for your customers.

Source: Finextra — Lending

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