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Canada’s Neo is following neobanks’ typical path to profitability🇨🇦; A neobank for gamers?! 🕹; PayPal’s new credit card to boost user engagement 💳
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Canada’s Neo is following neobanks’ typical path to profitability🇨🇦; A neobank for gamers?! 🕹; PayPal’s new credit card to boost user engagement 💳

Good Morning FinTech, 11 April

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Linas Beliūnas
Apr 11, 2022
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Linas's Newsletter
Linas's Newsletter
Canada’s Neo is following neobanks’ typical path to profitability🇨🇦; A neobank for gamers?! 🕹; PayPal’s new credit card to boost user engagement 💳
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Good day Everyone,

And happy Monday! I hope you managed to relax over the weekend because this week starts off with 3 hot, fresh & really interesting FinTech stories. Enjoy:

Canada’s Neo is following neobanks’ typical path to profitability🇨🇦

The news 🗞 Neo Financial, a Canada-based challenger bank, is entering the wealth management space with an offering that will let ordinary investors access alternative assets.

The USP 🥊 Founded in 2018 in Calgary, AB, Neo is a FinTech company that provides spending, savings, and rewards programs. Through partnerships with leading financial institutions, Neo provides members with a safe and secure way to spend and save.

The product 👉 The newest product from Neo, Neo Invest, includes 4 alternative asset classes: cryptos, hedge fund-style strategies, infrastructure, and real estate. Here’s what we know thus far:

  • It’s underpinned by OneVest, a registered portfolio manager in all Canadian provinces and territories. However, the offering isn’t available in Quebec and doesn’t have a French-language version.

  • It offers the human touch of professional money managers actively managing portfolios. Neo said its product is “the first fully digital, actively managed investment experience” for Canadians.

  • Neo Invest has assets under management (AUM) fee of 0.75%, and some portfolio assets may have fees, called management expense ratios (MERs). It says that the weighted average MER across a portfolio is 0.40% to 0.50%

  • It offers automatic investing through direct deposit and scheduling.

  • It also lets customers customize their portfolios.

This move by Neo follows the typical neobank’s path to profitability and comes in perfect timing. Here’s the takeaway:

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