Fintech Moka gets started in socially responsible investment

On the 04/15/21 at 7:44AM


Alexandra Oubrier

Since its arrival in France last July, the Canadian micro-savings app has targeted young people with socially responsible investments.

Moka is moving up in the world. The Canadian rounding-up-based micro-savings fintech now plans to invest in socially responsible investment (SRI) funds managed by Amundi and PGIM, a subsidiary of Prudential Financial. Moka has chosen three Amundi SRI equity funds as well as two of PGIM’s ESG bond funds and built up three model portfolios deemed conservative, balanced and bold. Moka charges no management, front-end or back-end fees but, rather, a monthly subscription fee of €2.99 after a first month free of charge. However, the management companies do charge fees between 0.27% and 0.41%, depending on the profile chosen. The funds’ annual targeted returns are pegged at 2.5% for the conservative profile, 4% for balanced and 5.5% for bold.

Founded in 2017 under the name Mylo, and launched in France in 2020, the app aims to help 18-35-olds put money aside for their future plans. “There are over 520,000 users in Canada and already several tens of thousands in France,” said Maxime Lemaître, head of Moka for France. “They use the app to save and invest simply, automatically and responsibly without financial skills, either by depositing their money on Moka, or by activating the rounding-up mechanism to meet their savings objectives. They may withdraw money at any time.” Moka provides no investment advice. It’s up to the user to decide on portfolio profile, based on his/her personal objectives. The company runs a blog, a newsletter and a FAQ section with lots of educational content for familiarising its clients with the investment universe.

Technically and for the savings part, Moka uses Budget Insight for the connection to bank accounts and calculation of round-ups, and Treezor, an e-money establishment and bank-as-a-service platform and a subsidiary of Société Générale. For the investment offering, user money is entrusted to Moka Asset Management Europe, holder of an execution licence that is registered and supervised in the Netherlands. Moka was taken over by Mogo, a listed Canadian neobank with more than 1 million customers.

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