Mogo this week announced the next generation of its wealth-building app, Moka.
The Vancouver-based digital wealth and payments business unveiled Moka.ai, equipped with “significant updates and enhancements designed to help the next generation of Canadians get on a real path to becoming millionaires and achieving financial freedom.”
David Feller, founder and chief executive officer of Mogo, says the financial system is broken.
“A recent survey of Canadians aged 55 to 65 who have yet to retire revealed that 75% have less than $100,000 saved versus the average amount of $1.7 million that Canadians believe they need to retire,” he said.
The system breakdown presents an opportunity for disruption, according to Feller.
“Our goal is to help ensure that the next generation doesn’t suffer the same fate,” he says.
But how does an organization achieve this for Canadians amidst so much economic uncertainty?
“Leveraging decades of data and behavioural science, we have created a product that helps anyone get on a path to being a millionaire,” Feller believes. “With Moka, we are seeing people go from not having a financial path to retirement to being on track for retiring with millions.”
Those using Moka hail from a variety of paths, all of which share one thing in common: failing to help Canadians reach their financial goals in time.
“Some were investing in mutual funds, some were simply putting money in a savings account—but most had no idea what the right approach was or how much they would need to invest to achieve financial freedom,” says Feller. “Moka makes it easy.”
For example, Moka utilizes behavioural science to help investors “adopt the right habits to achieve financial excellence,” according to a statement from the fintech, including in-app gamification.
Other features on the platform include a patent-pending wealth calculator that helps users figure out how much they need to invest to achieve financial freedom.
But despite advanced AI and other tech, Moka isn’t trying to reinvent the wheel. Rather, the platform specializes in helping members invest in the S&P 500, which the company describes as a “proven long term strategy.”
Citing a decades-long average return of 10%, Mogo claims that investing in the S&P 500 outperforms not only the the average investor, but also more than 90% of money managers.
Moka’s fully managed solution charges a flat monthly fee of $7 per month.
Founded in 2003, Mogo boasts more than two million members and nearly $10B in annualized payments volume.
Following a post-pandemic plunge, the publicly traded company has been buying back its own shares.
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