This week, CIBC, TD, and RBC reported a 100% increase of profit for Q1 of 2021 compared to the same period last year, while BMO has almost doubled their profit.
Currently, 53% of Canadians live paycheque to paycheque.
A $5,000 minimum balance to avoid fees will have detrimental effects on the financial wellbeing of these Canadians who will not be able to meet this requirement.
Canadian fintech KOHO has furthered their commitment to challenging traditional banking through the launch of their “Fight the Fee” campaign.
This initiative was designed in response to the Big 5 Banks raising account fees and minimum balance requirements while the COVID-19 pandemic continues.
“Fight the Fee” aims to help Canadians struggling with these surges in service and account fees. KOHO will cover up to $30 for costs incurred due to overdraft or monthly fees at their current financial institution. This offer is available to new users who sign up for KOHO from May 28th, 2021 onward.
“We saw the news coverage of the fee hikes at the Big 5. The reactions to these surges resonated deeply with our mission here at KOHO,” said Daniel Eberhard, Founder and CEO of KOHO.
“This is the type of behaviour that we’ve been fighting to change. For the past year, the pandemic has affected all Canadians in one way or another, and now, banks are adding more financial stress to the equation. We want to inform Canadians that they have alternative avenues to manage their personal finances. Alternatives that won’t prioritize profit at the expense of the customers.”