This week Toronto-based KOHO launched a new service, KOHO Credit Building, reports all activity to TransUnion, one of the two major reporting bureaus in Canada. The service costs $7/month, and is aimed at helping clients improve their credit scores. By issuing a small line of credit and reporting on it monthly, clients can generate a positive credit history. 

“Historically, the options for building credit are expensive, murky or both, especially for middle-class Canadians,” explains CEO of KOHO, Daniel Eberhard. “We think our approach to credit building is a new form factor. It’s simple, affordable and transparent. We’re really proud of it.”

The service complements KOHO’s existing product shelf, which is based on a full-service banking or savings account with no fees. The account includes a prepaid Visa card that earns cash back. 

The startup is backed by industry giant Power Corp., and it’s growth trends are impressive. With over 350k users, and $2 billion a year in transactions, it’s one to watch (but certainly not the only one, with a nod to MotusBank, Mogo, NeoFinancial and Revolut). 

Our insights team at LARI particularly likes their publicly accessible product roadmap. It allows anyone to see what’s in their development timeline for the year ahead, and provides virtual collaboration options for visitors to submit feature requests. We applaud this approach for a few reasons:

  • Engaging heavily with clients in product development is the surest path to a winning product
  • Transparency ranks highly on the list of what Canadian clients value from a financial services provider
  • Collecting client feedback during ALL cycles of product development will hands-down result in better products than a gated approach with “windows” for feedback and refinement


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