Neo Invest: Growing Faster Through Product Partnerships

In a time of huge technological advancements, it feels like anything is possible in the world of technology. While that may be true, it takes time to get there.

It also takes strategic partnership.

Product partnerships can turn a solo trek up a steep incline into a team sport with harnesses and friendly faces to cheer you on and tell you where it’s dangerous to step along the way. It’s the kind of relationship that is both exciting and secure, and opens up a world of possibilities through the power of collaboration.

Kris Read, Co-Founder and CTO of the newly minted unicorn company Neo Financial, sat down with Nathan Di Lucca, Co-Founder and CTO of OneVest, to discuss how their strategic partnership has benefitted both companies and led to the creation of Neo Invest.

In 2020, these fintech companies saw the opportunity to make a move to disrupt the financial industry and invest in the wealth of Canadians. Bringing together Neo’s banking services and OneVest’s Wealth-as-a-Service platform, they built Neo Invest, which allows Neo customers to make investments in a landscape where banks and wealth management services demand net worths of over $1 million for use of their services. By simplifying the investment process, these two companies are working together to democratize wealth and make it accessible for all Canadians.

While these companies are rising stars in fintech, building something like Neo Invest wasn’t possible for either company to do alone. It was only made possible through strategic partnership.

Why product partnerships make sense

Having reached unicorn valuation in just three years, one of the fastest companies in Canadian history to do so, you might be wondering why Neo didn’t take a solo route to building its lineup of investment products. As Kris Read says, “We were building our own tech, we were building bank accounts, and honestly, we did not have the ability to work on investments. We didn’t have the resources. We didn’t have the time. There was no way for us to get a product to market on our own, and that’s where the idea of a partnership came in.”

It’s tough to admit sometimes that you need help, and that can make using a vendor appealing because it gives you the reins and the final word on big decisions. But Neo didn’t want to go that direction. As Chris puts it, “If this was a vendor relationship, we would be looking for someone to just solve a problem. But instead, we made a partnership, and we were able to pursue a common opportunity. It was us going, ‘let’s go after something together.’” In a vendor relationship, the companies would have been exchanging lists of requirements, but instead, they were collaborative in imagining where they could go together.

The strategic partnership was a success. Neo Invest is celebrated for being the first fully-digital and actively managed investment experience in Canada, giving access to exclusive investment opportunities. But a successful product doesn’t mean that the road was always easy.

How to choose the right product partnerships

Like in any relationship, product partnerships come with compromise, and there are going to be bumps along the road, but that isn’t a bad thing. As Kris puts it, “I think that’s the beauty of a true partnership — you come together and you sort it out. You don’t just say, ‘All right, this isn’t going to work’ and you go off and find a different vendor. You’re not always going to find the perfect solution.”

So how do you know you have enough common ground to make it work?

Honesty

The hallmark of any good relationship is honesty, and that’s no different when it comes to a strategic business partnership. As Nathan says, that openness makes it possible to work closely together: “When you’re talking to a vendor, you may not be as open about the actual pitfalls that have happened. But since we were very open and honest with each other, we were able to have those conversations and help each other.”

Constant communication

Starting to build Neo Invest in the middle of a lockdown meant that communication was more important than ever. The companies set up a shared Slack which allowed file sharing and discussion, and having a shared collaborative space proved key to forming a relationship. As Nathan jokes, “I spoke to these guys way too much — I think my wife was worried about who I was talking to!” Usually, an implementation manager would be the point person in a vendor relationship, but by cutting out that role and putting the respective product managers and teams together, the focus shifted to getting right down to building.

Same destination, same starting point

While both Neo Financial and OneVest are fintech companies, they occupy different parts of the space, yet they share the same vision. As Chris puts it, “What’s unique about a partnership is that you find that you’re really aligned on what you want to achieve. Neo wants to make things better for everyone in Canada, and OneVest wants to make things better for everyone in Canada. We both want to create financial freedom and wealth for Canadians. Once you have that alignment, you know you’re headed in the same direction, and your working relationship will go smoothly.”

Finding the right partner who shares your mission and meets you with an open, collaborative spirit is what makes building possible. It’s what’s made Neo Invest a success and the partnership between Neo Financial and OneVest a match made in fintech.