Neo Financial

Neo Financial: a case study


Neo Financial
Learn More
To the point Introducing Neo Financial, a new online platform. Details of its financial products and service offerings and our verdict.

The Canadian banking landscape has undergone significant change in recent years. Indeed, the hegemony of the country’s big five institutions (TD, BMO, RBC, Scotia and CIBC) appears to be over as several new financial institutions such as EQ Bank, Tangerine, Motusbank and Alterna gain prominence.

These modern virtual banks offer low-cost financial products. Transactions are also simplified as they are conducted online. A trip to the branch is therefore not necessary.

In addition, their checking and savings accounts have higher interest rates than traditional banks. This competitive return is made possible by savings on rental costs. Indeed, these institutions do not need physical premises to carry out their operations, as their activities are carried out electronically at a distance.

To this end, several other electronic financial platforms have been created. This is particularly true of Neo Financial. In this paper, we will discuss this new financial interface.

neo logo

What is Neo Financial?

Neo Financial is a Canadian financial institution based in Winnipeg, specializing in savings and credit products. Special attention is also being given to the financial literacy of Canadians.

This innovative initiative is the brainchild of Andrew Chau and Jeff Adamson, who previously founded the “Skip the dishes” food delivery app.

Neo Financial offers its users a range of services:

Here, we analyze two of these Neo services.

Neo Epargne Frais Fr

Neo Financial products

Neo Credit Mastercard credit card

The Neo Credit Card from Neo Financial is affiliated with the credit card provider Mastercard. It has no annual fee and is fairly easy to obtain, although a minimum credit score of $300 is required.

Failure to pay your bills can be costly, as the interest rate charged is between 19.99% and 24.99%.

The credit limit can vary depending on different criteria such as your payment history, the presence of debts and your annual salary.

The maximum credit limit is $10,000. This product is available in Quebec.

Neo Intro Card En

This card allows you to accumulate cash rewards after each of your expenses.

Neo Financial has several partners. The best known in Quebec are :

  • Shell,
  • Esso,
  • Pharmaprix and
  • Hudson Bay.
Neo Partners Fr

The Neo Financial e-application is easy to use and you can easily track your cash rewards accumulation.

Here is a visual overview of the mobile interface of the rewards program:

Neo Rewards Card En

Neo Money High Interest Savings Account

Neo’s high-interest savings account is a great discovery, standing out from the competition. Here is an account of the main advantages and disadvantages of this account.

Benefits

  • High interest rate: The interest rate on this account is 4%. This is one of the best rates in Canada. It is currently superior to some other similar financial institutions.
  • Year-round promotion: The interest rate is valid for the whole year, which is an advantage over competitors such as Tangerine, who tend to offer promotions over a shorter window of time, generally between 3 and 6 months.
  • Many free services: Wire transfers, Interac transfers and bill payments are all free. It is also important to mention that there are no fees for managing your account.

Disadvantages

  • No debit card: Neo does not currently have a debit card. However, it appears that this may change sooner rather than later as discussions are underway to create this financial product.

Advantages and disadvantages of Neo Financial

Benefits

  • Excellent virtual application that allows you to track your rewards accumulation and credit card transactions
  • Easy-to-obtain credit card with an innovative rewards program offering generous cash returns
  • Savings account with a high interest rate (4%) among the best in the country

Disadvantages

  • Debit card not available

Verdict on the Neo Financial platform

Overall, we find Neo Financial’s financial products attractive to Canadians.

The Neo Credit card is attractive because it’s free and easy to use.

Secondly, we like the simplicity of Neo Financial’s mobile interface. The information contained is clear and concise, and easy to find.

Finally, we note some shortcomings concerning Neo Financial’s offering of certain financial products. We are thinking in particular of the absence of a debit card. It seems, however, that changes are gradually taking place, notably with the high-interest savings account now also available in Quebec.

We remain optimistic that Neo Financial will continue to build on its current momentum by developing additional financial products. We believe that developing a low-cost virtual investment platform would be a great initiative.

Come to discuss that topic in our Facebook Group!
4.6 Milesopedia Rating
Gabriel
Passionate about hockey, personal finance and northern landscapes, Gabriel divides his time between the vast spaces of Nunavik, the picturesque landscapes of the North Shore and the urban vibrancy of Montreal. Even more, he aspires to financial independence and dreams of one day visiting Greenland and Antarctica! His mission at Milesopedia? To share his travel experiences and help people find the best travel itinerary at the best value. . Website: gabrielpiotte.com / Blog: firequebec.com

Suggested Reading