Is Neo Financial a bank?

Short Answer

No, Neo financial is not a traditional bank. It is a Fin-tech company that aims at improving and revolutionizing the way in which financial services are offered.

Detailed Answer

What is Neo Financial?

Neo Financial is a fintech company that was launched in the year 2019 in Canada. It was created with the aim of innovating financial services and wishes to embrace all Canadians. The company concentrates on services to enhance spending, saving, investing, borrowing, security and credit score monitoring. Neo offers various rewards and cashbacks for using its products.

Fintech company vs traditional banks

A traditional bank is a licensed organisation that is regulated by the Bank of Canada. They take care of offering financial services and mainly focus on the security of funds of the clients. Whereas, a fintech company focuses on automating and improving financial services. It is also not regulated by the central bank.

Traditional banks are generally stricter than Fintech companies. It is easier to open an account or borrow money from a Fintech company than in a traditional bank.

Traditional banks generally have branches across Canada, whereas Fintech companies do not have any physical branches. If you are an old-fashioned person, who wishes to physically meet and talk to a representative of the bank, he or she should prefer the traditional banks. With a fintech company, you can only make phone calls, send e-mail or chat with the representative.

You must be tech savvy, and have a device connected to the internet to effectively use Neo Financial. Whereas, with traditional banking, it can be managed with pen and paper.

Is Neo Financial a bank?

The main slogan of Neo Financial is “What if the future of banking wasn’t a bank?”. As illustrated above, Neo is not a bank, rather a fintech company. Neo aims for “No branches, no lines, no limits, just innovation.

Tagged With: is neo financial bankneo financial vs banksbanks vs fintechneo financial fintech
Categories: Finance
Ask Your Query for FREE, Get quick answers from our FINTRAKK community!
Discussion (0)
Related FAQs
What is a Neobank in Canada?

Neobanks are a modern-day concept of banks without physical branches which simplify banking services for individuals. Neobanks are an alternative to traditional banking services. They are advantageous in various ways as described in the following answer in detail.

Is Neo Financial safe?

Neo Financial is not a traditional bank. However, it is deemed to be safe as it is insured by CDIC, under IIROC and is partnered with well-established brands.

What is the difference - Wealthica vs Mint?

Mint is mainly used to track cashflows and budgeting, whereas, Wealthica is mainly used to track the performance of your assets such as bank accounts, properties, investment portfolios, cryptocurrencies etc.

What is Neo Financial?

Neo Financial is a fin-tech company that aims to innovate financial services and make it inclusive. The company has amassed 1 million plus clients in less than three years.

Is EQ bank in Canada legit?

Yes, it is legitimate to open an account with EQ bank in all the provinces of Canada. Let's grab some more important information on EQ bank, advantages and disadvantages of opening an account with the digital bank.

Which is the fintech capital of Canada?

Toronto is not only the business and financial capital but the fintech capital of Canada as well. Let's peak into some more details on Canada's fintech hub, an attractive place for startups and entrepreneurs.

Who is Neo Financial owned by?

Neo Financial was founded by Andrew Chau, Chris Simair, Jeff Adamson and Kris Read. They are also the founders of SkipTheDishes.

Which bank has the highest interest rate on savings account in Canada?

According to our analysis, CIBC eAdvantage Savings Account seems to offer the highest interest rate in Canada. Let's see why CIBC ranks high in interest rate offered.

Is Qtrade or Questrade better?

Questrade seems to be a better choice unless you are interested in owning mutual funds. But, both Qtrade and Questrade have their pros and cons. So, we will be comparing both the stock trading platforms here.

What is Mint App?

Mint is a financial planning tools for individuals and is one of the products of Intuit. You can track all your assets, liabilities and cash-flows in a single place with Mint.