TORONTO, May 27, 2020 (GLOBE NEWSWIRE) — KOHO, Canada’s leading challenger bank, today announced it is piloting a new Early Payroll feature that will help those under financial strain pay their bills and make ends meet. KOHO’s Early Payroll pilot will grant users free access to $100 of their CERB payment before the scheduled payday. KOHO will not charge fees or interest. The company hopes this will provide a cushion that many Canadians could use right now to help pay bills and necessary expenses, and avoid harmful loan alternatives.
“The economic impact of COVID was not equally distributed,” said Daniel Eberhard, Founder and CEO of KOHO. “A lot of lower and middle income Canadians are vulnerable right now. The KOHO team did an amazing job putting this together so quickly. We hope it helps.”
In 2016 the Financial Consumer Agency of Canada released a report on payday loans that revealed the average cost of a $300 loan (for two weeks) is $63. That means 21% of the money you borrow is automatically eaten up by fees.
In March, KOHO partnered with the Canada Revenue Agency to allow Canadians to receive their Canada Emergency Response Benefits (CERB) seamlessly through the KOHO app. With a continued focus to support their community, KOHO is now piloting a new Early Payroll feature. The pilot is intended to help alleviate cash flow pressures caused by COVID-19 by offering free early access to users’ CERB funds.
Now live in the latest version of the KOHO app, KOHO users who have their CERB benefits being directly deposited into their KOHO account will be eligible to receive $100 three days prior to their next scheduled government benefit. The $100 will automatically be debited from the user’s account when they receive their next CERB direct deposit, making the process simple, adaptable, and with no strings attached.
KOHO is a new era of banking on a mission to make the financial system transparent and intuitive. KOHO offers a full-service account with no hidden fees. The account comes with a prepaid Visa card that earns cash back on every purchase, and an integrated app that helps users spend smart and save more.
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