While KOHO is not a bank, per se, it is a legitimate financial technology company offering banking services. They are backed by a range of private investors, and although bank failure is very rare - if not unheard of in Canada - KOHO does claim to be insured by the CDIC.

What app is like KOHO?

Some Canadian apps that are most like KOHO are EQ Bank's mobile banking app and Simplii Financial's banking app. Both of these alternative apps offer access to your money, transfer options, spending tracking and more financial management features.

The Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation that provides insurance for deposit holdings at banks and other financial institutions. Any customer who opens a bank account at a CDIC insured bank will be covered for up to $100,000 in the unlikely event that the bank fails.

Is KOHO Financial Canadian?

Yes. KOHO is based in Toronto, Canada. You also have to provide valid Canadian ID to sign up for an account.

Does KOHO actually build your credit?

KOHO does offer both standard and flexible credit-building programs, and payments are reported to Equifax. By making regular purchases and payments through KOHO, users can build up a positive history of payment which should be reflected in their credit score over time.

What are the downsides of online banks?

Online banks offer a lot that we wouldn't usually find at traditional banks - primarily high-interest savings. However, the major downside with online banks is the limitation around customer service. With no physical locations or stores, online banks can only provide service either online or over the phone, which doesn't suit everyone. That said, online banks can still offer good customer service. Just check out some reviews before you make your final decision when choosing a new bank.