Canada Post Enters Banking By Launching New Accounts with Koho

Two years after a failed lending initiative, Canada Post is set to expand its financial services. The launch of chequing and savings accounts in partnership with Koho Financial Inc. will occur nationally next year, with early access granted to employees during the testing phase. Canada Post identified gaps in current banking offerings, and the new accounts will feature prepaid, reloadable Mastercards that function similarly to debit cards. The partnership follows an earlier lending program launched with TD Bank Group in late 2022, which was abruptly halted due to processing issues. Lisa Liu, a spokesperson for Canada Post, indicated that the organization has shifted focus from loans to core financial products based on insights gained from the previous initiative. The variety in account options will include no-fee accounts as well as premium accounts with added features. This move marks a significant step for Canada Post, which has been exploring alternative financial services after its previous lending program's failure. The collaboration with Koho has allowed customers to deposit cash at post offices, enhancing convenience and accessibility. Koho is also pursuing a Canadian banking license to broaden its offerings. Overall, Canada Post aims to better serve the financial needs of Canadians by filling the gaps left by traditional banking institutions through innovative financial services.