Save money as you spend through Mylo

Fintech comprises all kinds of innovations that aim to compete with traditional financial methods and answer the financial needs of populations. It is currently booming in Canada, as Millennials as starting to earn a living and are not satisfied with what traditional banks have to offer.

We have already touched upon fintech on Innovation Montreal: the use of cryptocurrencies and blockchain to finance projects with a social impact (Impak Finance), or Hardbacon’s app that allow users to become better self-directed investors.

Today we present Mylo: a mobile app that automatically rounds up every purchase you make and invests the spare change.

Fintech on a social mission

mylo bannerWhat drives Mylo’s founders from the beginning is to make saving and investing accessible for all Canadians and especially for Millennials.

To use Mylo, you do not need any knowledge in finance. Mylo works through a partnership with Tactex Asset Management advisors who invest your money in Exchange-Traded Funds (ETFs).

Basically, the more you spend, the more you save… simple, right? If you buy a $3.60 coffee through your debit or credit card, Mylo will automatically round your purchase to $4.00 and invest the extra $0.40.

Going even further, Mylo is not just a tool for investment, it gives recommendations that are customized and personalized. Using artificial intelligence, the app helps its clients optimize important financial decisions such as insurance coverage, interest payments, travel purchases…

“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.”

The financial model is very attractive: there is a monthly fee of $1 to get access to the app. The customized recommendations are completely free but if clients implement the recommendations, the Mylo team then earns a success fee from their partners.

Finance veterans turned startupers

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Phil Barrar and Liam Cheung, Founder and Chairman, are already veterans when it comes to financial investment.

Phil is less than 30 but has been into the Canadian entrepreneurial community for a while. He successively launched and sold two ventures after graduating from Concordia University and ended up joining a Montreal investment fund in 2015: Ferst Capital Partners. This is when he started thinking of ways to democratize financial investment decisions. Mylo emerged from his market study in 2016.

Liam joined the adventure later in 2017. With over 25 years of expertise in finance and technology, he had founded Tactico Inc., the parent company of Tactex Asset Management, an investment firm that manages client-focused equity portfolios.

Mylo acquired Tactex gaining more credibility in the process: a relatively new fintech actor had enough power for acquiring a team of portfolio advisers that manages over $110 million in client assets.

From pitching to seed investing, a tremendous growth

Mylo participated to the iconic TV show Dragon’s Den and got a great deal from three of the investors but as months past and as they worked on a beta version, the team managed to secure a strategic offer that made more sense for our company. They raised $2.65-million in seed financing lead by Desjardins Capital which allowed them to officially launch on the App store.

Today, the startup wants to offer more than just an app. On International Women’s Day, Mylo released a report analyzing the gap between women and men when it comes to saving and investing and offering recommendations to reduce the gap and innovate investing habits.

Hardbacon, making finance accessible through innovations

Meet Julien from Hardbacon, an impact-driven fintech startup on the edge of launching an innovative mobile application to invest on the stock market.

From business journalist to entrepreneur

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(c) MTL in Tech

On Monday, during Queen City Fintech Demo Day, Julien must have had thousands of ideas coming to his mind: what an incredible journey, from writing articles on latest finance news at Les Affaires, Quebec top business newspaper, to raising more than 6 times the expected amount on Ulule, and being part of the prestigious accelerator by Bank of American and Wells Fargo in North Carolina.

Indeed, this is a promising success story that emerged from a desire to serve young generations’ financial aspirations and improve online brokerages and robo-advisors, Julien found out that it clearly needed improvements.

He therefore started by offering “Not Another Boring Course About Investment” through the crowdfunding campaign on Ulule: 4 hours of video content with a retail value of $100, offered at $50. Thanks to an efficient network of ambassador and really speaking to Millennials, it was a real success.

The online course was only the first step to a wider project: creating a platform that provides financial information to everyone and that allows to invest on the stock market.

Innovating brokerage  

With a dream team of 2 backend developers, 2 iPhone developers, one designer and one financial analyst, and this initial bundle of money, Hardbacon started working on creating a stock brokerage comparison tool and a mobile app.

“We want to do what Bloomberg did for financial institutions but for random people. Make investment accessible to everyone.”

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Targeting the right public

The Ulule campaign made them realize that contributors were actually around 35-36 years old. Millennials are not yet considering investment as a priority as an initial capital of $5000 is usually needed to invest on the stock market. Instead, contributors and target customers are thinking about ways to better handle their money, thinking about wealth and pension management.

Differentiating

Since the Canadian financial market is highly concentrated, Hardbacon is not considered as a threat by brokers, banks and other financial actors. In fact, Hardbacon is earning money by selling robot-advisors services but it is also providing a unique portfolio analysis to clients.

“We want our clients to manage their portfolio by themselves, thanks to Hardbacon advice”

It’s time to disrupt the US market

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As entrepreneurship is about always targeting new challenges, Julien is now ready to conquer the US market. Because it has similar stock market structures but with different brokers. And because it allows to offer more services to clients than Canada: in the US, Hardbacon can add a financial recommendation dimension by registering to the Security Exchange Commission.

“We want to analyse the market and provide recommendations to our clients. Ideally, the US version of the website will include a chatbot.”

You can know download Hardbcon on Apple’s AppStore.