Challenger Bank Credit Cards: KOHO vs. Neo vs. Brim vs. STACK

The advent of digital technology has opened the doors for a slew of innovative products and services, including in the banking industry. These days, Canadians can do much of their banking completely online thanks to the Internet. And now, several banking companies operate entirely online with no physical branches to visit. 

These ‘challenger banks’ have revolutionized the way people do their banking thanks to the convenience of online access to finances from laptops or mobile devices. These online-only banks are giving traditional financial institutions a run for their money, prompting legacy banks to come up with digital offerings that make banking quick and easy without compromising quality. 

What Is A Challenger Bank: KOHO vs. Neo vs. Brim vs. STACK

A challenger bank is a smaller independent bank, as opposed to traditional financial institutions, that focuses predominantly on online banking products and services. They’re called “challenger” banks because they’re established to challenge the way consumers typically manage their money. Rather than having physical branches, challenger banks have an online presence only.

Challenger banks are helping to revolutionize the banking industry and are giving conventional banks some competition. Those who are looking for more convenience are increasingly finding challenger banks a more attractive option when it comes to banking. 

Clients can not only stash their money away in a bank account, but they can have pretty much all their other financial needs addressed as well.

What Kind Of Banking Services Do Challenger Banks Offer? 

Just because challenger banks are smaller and are strictly online doesn’t mean their offerings are limited. Instead, challenger banks offer a host of products and services that rival traditional banks, including the following:

• Chequing accounts
• Savings accounts
• Loans, including mortgages
• Credit cards
• Investment vehicles
• Rewards programs

KOHO vs. Neo vs. Brim vs. STACK

Neo Financial

Neo Financial offers two products: a chequing account and a credit card. Their goal is to redesign the way Canadians currently spend and save their money. They intend to simplify personal finance through their products by creating a community and system that lets Canadians do more with their money.

Neo Chequing account

Unlike traditional savings accounts from big banks, Neo Financial offers a no-annual fee high-interest account that lets users, save, spend, and earn interest all from the same account. Users can use their Neo Chequing account to send or receive e-transfers, pay bills and make deposits. 

• No annual fee
• No minimum balance
• 0.1% interest rate on account balances 
• Free e-transfers and everyday transactions
• Free Neo Money™ card that links to your account
  • Up to 4% cashback on gas and groceries; up to 1% everywhere else¹

Neo Mastercard

The Neo Mastercard comes in two forms: secured and unsecured. The Neo Mastercard has no annual fee, while the Secured Neo Mastercard has a $9.99 monthly fee. Regardless of which one you get, you can:

• Earn up to 15% boosted cashback at thousands of Neo partners across Canada.

Plus, get guaranteed* instant approval and immediate access to a virtual card. Plus, you could be eligible for a credit limit increase in as little as 3 months*.

Brim Financial

Headquartered in Toronto, Ontario, Brim Financial is an online credit card issuer licensed by Mastercard®. Brim offers two unique credit cards that help Canadians save more and earn more rewards. They also have a flexible rewards system that allows users to redeem their points on any purchase, there are no black-out periods or restrictions like many other traditional credit cards.

Brim Mastercard® Features

• No annual fee
• Earn 1 point for every $2 dollars spent
• Installment Pay feature for purchases over $500 
• Access to complimentary Boingo Wi-Fi
• Various types of insurance coverages, including mobile device coverage, extended warranty, and travel accident coverage

Brim World Elite Mastercard® Features

• Premium credit card offering
• Earn 1 point in rewards for every dollar spent
• Free Boingo Wi-Fi
• Comprehensive insurance package, including everything offered with the Brim Mastercard®, plus a few extras like emergency medical, rental car insurance and hotel burglary coverage 
• $89 annual fee 

STACK

STACK is another online credit card issuer that is centralized on its app, which is where clients can access their banking products and manage their money without having to visit a brick-and-mortar branch or even have to log in on a computer. Instead, everything can be done directly on the STACK app. STACK’s prepaid Mastercard® was invented with the goal of providing users with better control of their finances. Their Mastercard offers instant rewards along with no fees and advanced tools that can help you track and manage your spending. 

Stack Prepaid Mastercard® Features

• No annual fees
• Reloadable
• Earn instant cash-back on purchases from participating merchants
• Discounts from partner brands
• Purchases can be automatically rounded up to the next $1, $2, $5, or $10, with the difference saved
• Earn a welcome bonus when you refer a friend/family member

KOHO 

Founded in 2014 and based in Toronto, KOHO is a Fintech platform that believes that there are better financial solutions available. Through the power of financial technology, KOHO offers three full-service accounts to help Canadians better manage their money while earning rewards.

Users will earn interest on the balances they hold with their KOHO accounts and receive a prepaid credit card.

The KOHO prepaid credit card offers the best of both worlds, a debit card connected to your KOHO account and a credit card.  You can use your prepaid card to make purchases, pay bills, and send e-transfers all the while earning cash back on eligible purchases. Moreover, the KOHO prepaid Mastercard comes with additional money management features such as automatic savings, financial coaching, and instant notifications. 

Core Account Features

• Has no annual fee, $0
  • No conditions to get the $0
    • No recurring direct deposit required
    • No minimum monthly deposit required
    • No minimum balance to maintain
• 1% cash back on groceries, transportation (gas, parking, rideshare apps, etc.), and eating and drinking
• Up to 6.5% extra cashback from select merchants.
• Earn 2% saving interest on the entire balance in your KOHO account
• Free e-transfers
• No NSF fees
• Credit Building for free, permanently
• Check your credit score for free in-app
• International money transfers
• Instant virtual card, plus a physical card

Essential Account Features

• Has an annual fee of $48
  • $0 if you…
    • Set up a recurring direct deposit of your paycheque or government benefit
    • Or, deposit $1000 per month to your account.
• 1% cash back on groceries, transportation (gas, parking, rideshare apps, etc.), and eating and drinking
• Up to 6.5% extra cashback from select merchants.
• Earn 2% saving interest on the entire balance in your KOHO account
• Free e-transfers
• No NSF fees
• Credit Building for $10/month
• Check your credit score for free in-app
• International money transfers

Extra Account Features

• Has an annual fee of $144
• 1.5% cash back on groceries, transportation (gas, parking, rideshare apps, etc.), and eating and drinking
• 0.25% cash back on all other categories
• Up to 6.5% extra cashback from select merchants.
• Earn 2.5% saving interest on the entire balance in your KOHO account
• No foreign transaction fees
• 1 Free International ATM withdrawal each month
• Credit Building for $7/month
• Check your credit score for free in-app
• International money transfers

Everything Account Features

• Has an annual fee of $177
• 2% cash back on groceries, transportation (gas, parking, rideshare apps, etc.), and eating and drinking
• 0.50% cash back on all other categories
• Up to 6.5% extra cashback from select merchants.
• Earn 3.5% interest on the entire balance of your KOHO account
• No foreign transaction fees
• 1 Free International ATM withdrawal each month
• Discounted Credit Building for $5/month
• Check your credit score for free in-app
• International money transfers

Use code LOANSCANADA when you sign up for a KOHO account and get $40 FREE when you add funds to your account.

Other Challenger Banks In Canada

Digital banks, which are also known as challenger banks, exist all across Canada. Currently, the most famously known challenger banks in Canada are KOHO, STACK, Brim and Neo. Other challenger banks include: 

Final Thoughts On Challenger Banks: KOHO vs. Neo vs. Brim vs. STACK

Challenger banks have been a game-changer in the world of banking. Clients who appreciate the convenience of banking through computers and smartphones will find challenger banks much more advantageous than conventional banks.

Challenger Bank Credit Cards FAQs

Neo Disclaimer

* _{Conditions apply. Must 1. be the age of majority in your province or territory of residence; 2. be a Canadian resident; 3. provide security funds; 4. be eligible for credit under Neo’s policies.}

_{Cashback earn subject to monthly spend limit. When monthly spend limit is reached, subsequent spending earns 0%. Spend limit resets monthly. For more information, visit the Neo app.}

_{Cashback may be limited and varies by perks, offer, and partner. See the Neo Rewards™ Policy for additional terms and conditions.}

_{For Quebec: Monthly statements; 21-day grace period; Minimum payment is the higher of $10 or 5% of total statement balance; Purchase rate is 19.99%-24.54% and cash advance rate is 22.99%-25.54%.}

_{The Neo Mastercard is issued by Neo Financial™ pursuant to license by Mastercard International Incorporated}.

_{Mastercard, World Mastercard, World Elite, and the circles design are registered trademarks of Mastercard International Incorporated.}