By Paul Vieira
Koho Financial, a Vancouver, British Columbia-based fintech startup which recently attracted investment from U.S. private-equity firms, has applied to become a deposit-taking bank in Canada.
The Canada Gazette, which is the official publication of the Canadian government, said Koho Financial intends to file an application with the country's banking regulator, the Office of the Superintendent of Financial Institutions, and the Minister of Finance, Chystia Freeland, to become what is known as a Schedule 1 bank. It intends to operate under the Koho Bank banner in English, and Banque Koho in French-speaking Canada.
A Schedule 1 bank takes deposits from savers, and offers loans and services to Canadian residents.
A representative for Koho Financial didn't immediately respond to a request for comment.
Drive Capital and Eldridge Industries, two U.S. private-equity firms, were among participants that last month invested 86 million Canadian dollars, or US$63.8 million, in Koho Financial through a transaction that values the business at about C$800 million.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
01-26-24 1525ET
