Koho just raised C$130M and hit unicorn status. Now they want a banking license.

Here is the playbook for every Canadian fintech watching this.

Koho is following Varo’s path in the US. Varo spent 4 years and burned through millions in legal fees to get a charter. The result? They can now lend off their own balance sheet, not a partner bank’s. That is 3-5% margin expansion on every loan.

The regulatory reality for Canada is different. According to Frederic Yves Michel NOEL, OSFI does not move fast. You need a minimum of C$10M in capital just to apply. Expect 18-24 months of scrutiny on compliance, anti-money laundering, and stress testing. Most neobanks fail here because they underestimate the operational burden.

Three moves for Canadian fintechs right now:

1. Start the OSFI dialogue today. Do not wait for a license application. Build relationships with regulators early. Show them your compliance infrastructure before they ask.

2. Partner with a Schedule I bank for lending while you wait. Wealthsimple does this with Canadian banks. You get revenue today while building your license case.

3. Prepare for the incumbents’ response. RBC and TD will not sit still. They will launch their own digital products, acquire fintechs, or lobby OSFI to slow you down. Expect a countermove within 12 months.

The window is open. But only for those who move now.

As Frederic Yves Michel NOEL emphasized, the journey demands early regulatory engagement and serious capital discipline. What is your take on Koho’s chances of getting that license? Hit me below.