Canada Post is venturing back into banking services two years after a failed lending program launch. The postal service announced on Friday that it will offer chequing and savings accounts in partnership with Koho Financial Inc. The accounts are set to be launched nationwide next year, with Canada Post employees receiving early access during the testing phase.
According to Canada Post spokeswoman Lisa Liu, there are gaps in the available banking and savings products that the Crown corporation aims to address. She stated, “Canada Post is uniquely positioned to fill some of these demands. Many of our existing financial products cater to the needs of new Canadians and individuals in rural, remote, and Indigenous communities, but we recognize the need for more.”
The upcoming MyMoney offering will provide a spending and savings account with customizable features such as high interest rates, cashback rewards, and credit-building tools.
A brief document on the Canadian Union of Postal Workers website revealed plans for a prepaid, reloadable Mastercard linked to the accounts, combining debit card functionality with Mastercard benefits. Multiple account tiers will be available, including no-fee options and premium accounts with enhanced features.
This initiative follows Canada Post’s unsuccessful lending program launch with TD Bank Group in late 2022, which was discontinued shortly after due to processing issues. Liu mentioned that the postal service has been exploring alternative financial service options since then, stating, “Building on our experiences, we are shifting our focus from loans to products more aligned with our core financial services.”
The new account offering will be developed in collaboration with financial technology firm Koho, which recently enabled customers to deposit cash at post offices. Koho is also pursuing a Canadian banking license to broaden its service offerings.
