Is Neo Financial safe?

  • Asked By
  • Updated On:
    29-Nov-2022
  • Replies:
    1

Short Answer

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.

Detailed Answer

Neo Financial and its services

Neo Financial is a fintech company that was christened in 2019 to enhance the delivery of financial services in Canada. It offers services such as credit, bill payments, direct debit, fund transfers, high interest savings account, theme-based investing, goal based investing, active portfolio management, mortgage, refinancing, credit score supervision, rewards, bonuses etc.

Is Neo Financial safe?

  1. The card offered by Neo Card is issued by ATB Financial.
  1. Neo Money is backed by Concentra bank.
  1. The funds parked in Neo Money is insured by Canada Deposit Insurance Corporation and the funds are insured up to $100,000 per deposit per category per depositor.
  1. Neo Invest is powered by OneVest. OneVest is a registered portfolio management company. The accounts of OneVest are held with CI Investment Services (CIIS). It is a registered dealer in every province and all the territories of Canada. Furthermore, it is a member of the Investment Industry Regulatory Organization of Canada (IIROC).
  1. Neo financial has collected around 1 million users since inception.
  1. The organisation has raised around $299 million of assets under management.
  1. It has 5 plus business solutions and it is growing.
  1. The company has more than 8,000 retail partners in Canada.
  1. The company has raised around $300 million from investors globally.
  1. The app is rated 4.8 on the Google app store.
  1. The company has employed more than 650 people.

Safety of Neo Financial

Based on the above credentials, we believe that it is safe to use Neo Financial. However, it is not a traditional bank and is not licensed or regulated by the central bank of Canada. Any bugs in your mobile can hamper the use of Neo Financial. Complaints of online scams and hacking are increasing day by day, which is to be noted.

Tagged With: neo financialis neo financial safeneo financial safetyneo financial risks
Categories: Finance
Ask Your Query for FREE, Get quick answers from our FINTRAKK community!
Discussion (0)
Related FAQs
Is CI Direct Investing safe?

CI Direct Investing as an organisation is safe as it is a member of CIPF and IIROC. However, your investments are exposed to volatility risk, market risk, concentration risk 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 Norbert's Gambit legal?

Yes, Norbert's Gambit method of currency conversion is legal in Canada. It is not restricted by any registered authorized of Canada.

Is it good to invest in the Canadian stock market?

Yes, Canadian stocks prove to be a shelter to investments with its wide variety of natural resources and stable banking system.

Is Wealthica safe to use?

Wealthica uses AWS, AES-256 encryption and TLS 1.2 technology to secure the data of its users. It applies two factor authentication on log in and can only read the data in your accounts. Hence, it is safe to use.

What is real time rail payment system in Canada?

Real Time Rail Payment System is a new system that enables Canadian residents to make payments faster, easier and round the clock. It has the existing payment system features and is ready to encompass innovations.

What is Wealthica?

Wealthica is an effective money management app that is accessible to Canadians where you can track your cashflows, net worth, aids budgeting, and analyses your investment portfolio.

Which Canadian RRSP account is the best?

Are you searching for the best bank or financial institution to open an RRSP account? There are various considerations you need to take into account before such as the investment option you are looking far, your market knowledge and experience, needs and goals, before finalizing the best RRSP account for you.

Which is the first company to start real-time rail payments in Canada?

Wealthsimple is the first company to get access to real-time rail payments in Canada, which is neither a bank nor a credit union. However, it is yet to go live in Canada.

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.