Prediction markets, which let users bet on the outcome of real-world events, are the hot feature in U.S. fintech. Koho isn’t adding them. On the BetaKit podcast, CEO Daniel Eberhard called them gambling dressed up as technology, with real social costs.
“I think that we will look back on prediction markets the same way we look back on altcoins and … NFTs,” he said.
Where Koho is focused instead:
- A bank licence. Koho is near the end of a five-year effort to get a Schedule 1 banking licence. Eberhard says it will let Koho offer more competitive lending and savings rates.
- Fresh capital. A recent $130-million Series E made Koho Canada’s newest fintech unicorn.
- New products, including a possible Koho mobile service.
Eberhard also criticized the Big Six banks for staying out of Canada’s new payments infrastructure.
Why it matters: As more U.S. trading and betting apps target Canadians, a homegrown fintech turning down an easy engagement feature stands out. If Koho gets its Schedule 1 licence, it becomes a real bank. The question is whether it can stay the low-fee, no-gimmicks alternative while growing like one.
