Neo Financial is entering the institutional capital markets space for the first time.
The Calgary-born fintech upstart this week announced a $150 million inaugural credit card securitization with BMO Capital Markets and fellow Albertan SAF Group.
BMO worked with Neo to structure a facility that fits the firm’s needs and provides committed capital to support the continued rapid growth of Neo’s credit card portfolio, according to Jeff Adamson, a cofounder of Neo who serves the fintech as chief commercial officer.
“Getting this done at this scale tells us the data is there and is a testament to the approach we’ve taken,” he says.
Institutional capital markets “evaluate credit quality with complete objectivity,” Adamson says.
“That’s the foundation we need to serve a lot more Canadians,” he said.
Founded in 2019, Neo has raised more than $650 million in funding and has been recognized as Canada’s top-growing company by The Globe and Mail and has also placed first on the Deloitte Technology Fast 50 three years in a row.
The Canadian fintech offers Neo Savings, Neo Invest, and Neo Mortgage, as well as credit cards and Everyday Accounts.
Since its founding in 2014, Calgary’s SAF has allocated over $5 billion across more than 70 investments, delivering capital solutions to partners across sectors.
“Our partnership with Neo reflects SAF’s commitment to supporting Canada’s most ambitious growth stories and highlights the strong demand for a Canadian-based provider of structured credit,” remarked managing director Nur Khan.
“We have been extremely impressed by the Neo team and the platform they are building to provide consumers with more accessible financing options across an expanding range of products,” Khan stated.
BMO Financial Group is the eighth largest bank in North America with assets of $1.5 trillion. The bank recently revamped their iconic Air Miles rewards program in favour of a new system called Blue Rewards.
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