Sacra estimates that Neo Financial hit an annualized revenue run rate of $115M in 2024, up roughly 40% year-over-year.

Neo earns revenue from three main sources: interchange fees on its no-annual-fee credit card, management fees from Neo Invest portfolios, and interest income from its mortgage product. The company claims over 1 million customers and 11,000+ partner merchants, processing over $1 billion in mortgage applications.

Neo Financial raised a Series D financing round of $362 million in Q3 2024, consisting of $112 million in equity plus $250 million in debt led by Tencent. The round valued the firm at around $510 million, representing a down round from the May 2022 Series C that valued Neo at over $1 billion led by Valar Ventures.

The company has raised more than $650 million in total funding since its 2019 founding. Notable investors across funding rounds include Valar Ventures, Tencent, Tribe Capital, and prominent tech founders Tobi Lütke from Shopify, Stewart Butterfield from Slack, and David Baszucki from Roblox.

Neo Financial is a Canadian digital-first banking platform that integrates spending, saving, investing and borrowing into a single mobile app. The platform offers a comprehensive suite of financial products designed to replace traditional banking relationships.

The Neo Everyday Account serves as a hybrid spending and savings account with no monthly fees, no minimum balance, and unlimited free transactions. Deposits are held with CDIC-insured banks, and customers earn modest interest on balances while linking directly to Neo's prepaid Mastercard with real-time spend notifications and card controls.

Neo's credit card lineup includes multiple no-annual-fee options with tiered cashback rewards. The core Neo Card offers average 5% cash back at approximately 10,000 partner merchants and 0.5% on other purchases, with credit limits up to $10,000. The Neo World Elite card provides enhanced rewards including 5% on groceries, 3% on gas, and 4% on recurring payments for customers who spend above $15,000 annually.

Neo Cash functions as a high-interest savings account paying 2.5% interest with the ability to create up to 10 named goal accounts for specific savings targets. Neo Invest offers actively managed portfolios built in partnership with OneVest, featuring tax-loss harvesting, risk management, and themed investment strategies.

The mortgage product operates as a digital marketplace enabling pre-qualification in minutes with competitive rates. Neo acts as a broker connecting borrowers to lenders while providing in-house advisors. The company's banking-as-a-service platform powers co-branded cards and deposit accounts for major brands like Tim Hortons, Cathay Pacific, and Hudson's Bay, offering API-driven integration with SOC2 and PCI compliance.

Neo Financial operates a B2C/B2B2C hybrid model that monetizes through interchange fees, interest spreads, and management fees while maintaining an asset-light balance sheet. For consumers, Neo offers free or low-cost financial products and captures revenue when customers use their credit cards at partner merchants, generating interchange fees that enable high cashback rewards.

The company's flywheel centers on encouraging customers to maintain balances in their Everyday Account, which reduces Neo's cost of funds and enables higher cashback on card spending. Neo partners with CDIC-insured banks to hold deposits, avoiding the capital requirements of a Schedule 1 bank while still offering banking services. The mortgage product generates revenue from lender commissions rather than borrower fees, positioning Neo as a broker in the lending ecosystem.

Neo's BaaS platform extends its technology to corporate partners who pay setup and ongoing service fees to issue co-branded cards and accounts. Neo captures interchange and transaction revenue from these programs while brands leverage Neo's infrastructure to offer financial products to their customers. The multi-bank partner program launched in 2024 allows Neo to sweep deposits across multiple institutions to maximize yields and share benefits with customers.

Cost advantages include fully digital onboarding, in-house payment processing, and AI-driven customer service that handles 45% of interactions. By vertically integrating card issuance, payment processing, and rewards across consumer and partner programs, Neo builds a network effect where retail merchants drive card adoption, consumers accumulate deposits and spending, and deposits lower funding costs for lending products.

Koho operates a no-fee spending and savings account paired with a prepaid Mastercard, advertising interest up to 4% on balances and up to 5% cash back at partner merchants. With over 2 million customers and $190 million raised in October 2024, Koho is pursuing a Schedule 1 bank license while expanding into lending and buy-now-pay-later products. Their aggressive product roadmap and customer base position them as Neo's most direct rival in everyday banking and rewards.

Wealthsimple has evolved from a robo-advisor into a full-service financial platform with over 3 million clients and $70 billion in assets under administration. Their 2025 credit card launch offers 2% cashback with no foreign exchange fees, while their chequing account pays up to 2.75% interest with early pay and waived ATM fees. With a $5 billion valuation and plans for instant lines of credit, Wealthsimple represents a formidable competitor combining digital banking with established wealth management.

Nesto began as a digital mortgage brokerage and acquired CMLS Group in June 2024, creating an entity with over $60 billion in mortgages under administration. The acquisition makes Nesto one of Canada's largest mortgage lenders, directly challenging Neo's digital home financing ambitions. Nesto has grown mortgage originations by 475% while using automation to streamline applications and underwriting processes.

Canada's Big Five banks still control roughly 90% of consumer deposits and loans, providing enormous brand recognition and regulatory expertise. They offer integrated credit cards, savings accounts, and mortgages while often matching fintech promotional rates, making customer acquisition expensive for challengers. Their large branch networks enable cross-selling from basic banking to wealth management services.

Other fintechs including Brim Financial, Motusbank, Simplii Financial, and EQ Bank offer competing no-fee accounts and cash-back credit cards. EQ Bank's $11 billion deposit base allows them to fund rates up to 4% from their internal balance sheet, creating sustainable rate advantages that non-bank competitors like Neo struggle to match long-term.

Neo launched registered accounts including TFSAs, RRSPs, and First Home Savings Accounts in 2025, moving beyond transactional banking into longer-term wealth accumulation. The company has publicly discussed adding insurance, youth accounts, and instant credit lines to deepen customer relationships and increase wallet share across households.

The multi-bank partner program introduced in 2024 allows Neo to sweep deposits across multiple institutions, unlocking higher yields and enabling more effective monetization of underlying deposits. By acting as the orchestrator, Neo can expand into treasury management and cash-sweeping services for businesses while maintaining its asset-light model.

Neo for Business provides banking-as-a-service infrastructure to brands outside financial services, with partnerships including Tim Hortons and Cathay Pacific demonstrating the potential to embed financial products in large customer ecosystems. Each new partner extends Neo's addressable user base beyond direct consumers while generating setup fees and ongoing transaction revenue.

The October 2024 deal with CI Financial expanded Neo's deposit and credit products to wealth-management clients, demonstrating its ability to move upmarket and serve high-net-worth households. This partnership pipes Neo's everyday banking products into CI's $500 billion wealth platform, targeting higher-net-worth clients and boosting deposits.

With more than 1.3 million customers and a network of 11,000+ merchants, Neo can cross-sell credit cards, savings, investments, and mortgages to deepen customer relationships. The company's merchant network has grown from 200 partners in 2021 to over 11,000 in 2024, creating a B2B revenue arm and unique rewards proposition to attract new consumers.

Neo's cashback partner ecosystem creates a flywheel where merchants drive card adoption, consumers accumulate deposits and spending, and deposits lower funding costs for lending products. The company plans to expand mortgage partner distribution and launch additional co-branded programs, both of which would broaden its footprint beyond direct consumer acquisition.

Regulatory uncertainty: Neo operates in Canada's heavily regulated financial services sector and partners with chartered banks to hold deposits. Any shift in open-banking rules or CDIC insurance requirements could materially affect its business model and raise compliance costs, potentially undermining the asset-light structure that enables competitive rates and rewards.

Incumbent dominance: The Big Five banks control about 90% of consumer deposits and loans, affording them scale, brand trust, and lobbying power that challengers struggle to match. These incumbents can rapidly match Neo's promotional rates or deploy loyalty programs, making it difficult for Neo to sustain high deposit growth and margins against competitors with deeper balance sheets.

Partnership engagement: Neo's success depends heavily on co-branded partnerships and high card usage, with 96% of active cardholders being co-branded customers in 2022, yet only 40% made transactions within 30 days. Misaligned partnerships or low engagement rates could dilute the brand and limit card spend, undermining the interchange revenue that funds Neo's cashback rewards and overall economics.