Mylo Financial Technologies Inc. (Mylo) have announced that they have closed a $2 million (Canadian) seed funding deal, led by Desjardins Capital and Robert Raich. Mylo operates a fintech app that aims to make investing more affordable by rounding user purchases up to the nearest dollar. The ‘spare change’ is then invested.
Fintech millennials can get behind
The appeal of the fintech product from the Montreal-based company is that users can start investing with less than $1. This type of product is likely to appeal to many millennials and others with few savings. It’s estimated that over half of millennials have less than $1,000 in their bank accounts. In addition, four out of five Ontario millennials are concerned with saving, with only one in two currently investing.
Mylo users can also accelerate their savings by making one-time deposits into their Mylo account, which are called Boosts, and invested funds can be withdrawn from a user’s account at any time. Commenting on the scheme, Philip Barrar, CEO and Founder of Mylo stated: “We’re focused on building the next generation of innovative technology, using AI in conjunction with financial data, to help Canadians improve all aspects of their financial lives. This partnership is a critical milestone in realizing that vision.”
Fintech growing the banking world
Mylo aims to harness technology to make it easier for Canadians to incorporate saving and investing into their daily habits. It has the secondary aim of promoting financial inclusion to a segment of the population that is traditionally excluded from the conventional wealth management industry.
These types of ‘spare the change’ schemes are ideal for beginners who are just getting started with investing, although users will need to note the fees involved. Each user will also need to consider their personal goals for investing and whether they are investing sufficient funds for the future.