Where financial services incumbents have started partnering with or acquiring emerging fintech companies to support their innovation strategies, Canadian fintech startup Mylo is doing the opposite.
Mylo announced today that it has acquired Tactex Asset Management and its client asset book of $110 million, providing the company with immediate revenue.
Mylo is a mobile personal finance platform that helps Canadians achieve their financial goals by automatically rounding up every purchase and investing the spare change.
Mylo’s signup process takes only 3-minutes, is 100% mobile, and requires no phone call to open an account. A user could step into line at Starbucks, sign up for Mylo by the time they reach the cash, and roundup that purchase.
The acquisition allows Mylo to create, launch and manage its own investment funds, save on operational costs, and communicate with its customers under one brand.
It will also position Mylo as the only automated investing service in Canada that provides users with a unique portfolio for each specific goal, professionally managed by a licensed portfolio manager.
“This deal accelerates our mission to promote financial inclusion,” Mylo CEO Philip Barrar told Techvibes.
Barrar continued, “It means that our users, with as little as $1 available to save and invest, get the same professional advice and low cost as those who have hundreds of thousands. By combining this with the technology we’re building through AI insights using proprietary transactional and cash flow data, we are better positioned to help our users achieve their financial goals.”
Tactex Asset Management has been providing portfolio management services to both retail and institutional investors and managing numerous mutual funds since 2011.
“The acquisition of Tactex will provide our users with fractional ownership of ETFs and professional portfolio management services at the low cost of $1/month. By assigning users a unique portfolio for each specific goal, we are empowering young people to invest through a goal-based philosophy – a first in Canada,” according to Barrar.