Canada Post to launch chequing and savings account with Koho

The accounts will be launched nationally next year, though Canada Post employees will be offered early access as the product is tested.

Canada Post spokeswoman Lisa Liu said in a statement that there are gaps in the banking and savings products available that the Crown corporation looks to fill.

“Canada Post is uniquely positioned to fill some of these demands. Many of our existing financial products help meet the needs of new Canadians and those living in rural, remote and Indigenous communities, but we believe more is required.”

The MyMoney offering will be a spending and savings account where customers will be able to choose between features like high interest rates, cashback rewards and credit-building tools.

A document briefly posted to the Canadian Union of Postal Workers website said it would use a prepaid, reloadable Mastercard that will use money from the account like a debit card but offer the features of a Mastercard.

It said there will be a range of account tiers, including no-fee accounts and paid accounts with more features.

The plans comes after Canada Post launched a lending program with TD Bank Group in late 2022, only to shut it down weeks later because of what it said were processing issues.

Liu said the postal service has since been exploring other possible financial service offerings.

“Utilizing what we’ve learned, we are making a strategic shift from loans toward products more aligned with our core financial service products.”

The new account will be delivered with financial technology company Koho. A few months ago the company paired with Canada Post to allow its customers to deposit cash into their account through post offices.

Koho is also working to secure a Canadian banking license to expand its services.

This report by The Canadian Press was first published Nov. 8, 2024.