According to Mylo’s founder, people care more about what they are saving for rather than how they are saving. This was the starting point of a reflection about finding ways to help people save without changing their habits. He created a tool that would automate the financial goal achievement process.
- Mylo is a savings app that automatically rounds up everyday purchases and invests the spare change to help users achieve their financial goals.
- Mylo links with the users’ existing credit/debit cards. Every time the user makes a purchase, Mylo rounds up that purchase and transfers the change into an investment account. This account is held with Canadian Shareowner Investments, and is managed by Tactex Asset Management, where it is invested in a diversified portfolio according to the user’s risk profile.
- Mylo also offers insights about several subjects such as mortgage loans, credit card debt, etc.
- Free Tool: Mylo is totally free. The company doesn’t charge any fees for their services. They are able to control costs because they leverage fractional trading where they can net all their trades together rather than executing a single trade for each person. Because of this they only execute trades once a week.
- Personalized recommendations for better financial choices: their business model is based on presenting to the users financial insights based on their accounts. These insights are free for users, but Mylo receives a referral fee from the vendors if the users choose to use these services.
How it works
- Users have to go through a 3 minutes signup process.
- Users spend money like they would do on a regular basis. Then, Mylo rounds up the amount and invests the difference. For example, if the user spends $3.75 on a coffee, Mylo rounds it to $4 and invests $0.25.
- On average, users can save $1000 per year using Mylo.