National Bank, Desjardins invest into Mylo

The fintech app will develop new products with support from the banks, aligning with their own digital goals.
Mylo-Mylo Raises -10M Series A From Major Canadian Financial Ins

Fintech startup Mylo has raised $10 million in Series A financing with help from two Canadian financial institutions.

NAventures, National Bank’s investment arm, led the round, which also had participation from Desjardins Capital.

Mylo’s main service is a free app that links to a user’s financial institution and rounds up every purchase they make to the nearest dollar, automatically investing the money into a diversified portfolio (or donating it to a charity). More recently, it has also been incorporating machine learning capabilities to use the access to spending data to provide personalized recommendations and financial advice.

Founder and CEO Phil Barrar says the company will use the funding to build new products aimed at helping Canadians achieve financial goals, as well as hire and look towards international expansion.

Automated, personalized advice powered by AI has been added to the services available in the apps from Canada’s big banks. Both National Bank and Desjardins have made investments into AI, but have not released as many consumer-facing options as their larger competition – both financial institutions have established partnerships that are more focused on using the tech for cybersecurity, with National Bank working with Element AI and Desjardins working with Polytechnique Montréal. Last year, Desjardins was also one of the major investors that helped to launch Luge Capital, a venture capital fund specifically focused on applying AI to fintech.

Igal Ohayon, director of venture capital at NAventures, says, for her company’s part, there is “great alignment” between Mylo’s financial management mission and National Bank’s focus on providing customers with new digital tools to do so, adding that supporting Mylo will also help to strengthen its own service offering.

Last year, Mylo also expanded its offering by launching Mylo Advantage, a $3-per-month tier that offers access to TFSAs, RRSPs, socially responsible investing options and rewards from partner brands.