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
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: