Introducing Lodavo: Revolutionizing Savings in Canada with Prizes

The Backdrop: Canada's Financial Security Crisis

Lodavo was born out of a growing issue of financial security in Canada. According to Statistics Canada, over a quarter of Canadians would be unable to cover an unexpected expense of $500 ^[1]. However, consumer spending across the country continues to increase. In fact, 51% of Canadian adults spend an average of ~$600 on lottery tickets each year - a fun, yet non-financially beneficial activity ^[2]^,^[3]. Why do so many people spend money on lottery tickets when the odds are stacked against them, instead of putting it into savings—a reliable way to build financial security? Because the lottery is exciting and saving money is boring.

In fall 2022, over one-third (35%) of Canadians reported that it was difficult for their household to meet its financial needs in the previous 12 months. When asked whether their household had the resources to cover an unexpected expense of $500, 26% said that they would be unable to do so [...] — Statistics Canada

The Problem with Traditional Savings Accounts

For the past several centuries in Canada, the concept of saving money has been built around delayed gratification. Traditional savings accounts lack the excitement and immediate rewards that today's world offers through social media, video games, and more. The psychological impact of this is clear: it's tough to see the long-term benefits of consistently saving money. However, the world of banking is evolving, thanks in part to technological advancements that lower costs for financial institutions, offering the potential for higher returns and lower fees for customers. This is why it's now possible to make some exciting changes to the way Canadians save their money.

How Our Prize-Linked Savings Accounts Work

Save

Deposit your funds and earn interest like any traditional savings account.

Play

Pick your lucky numbers and participate in weekly draws for awesome prizes! The more you save, the more tickets you earn.

Win

When your chosen numbers match the winning numbers, you win extra cash prizes! It’s always free, so you can’t lose!

Why Choose Lodavo?

At Lodavo, we're offering a unique spin on the traditional savings account. Our prize-linked savings account (PLSA) not only encourages you to save but also makes it an exhilarating experience. Here are some key features:

Free Weekly Draws: Choose your lucky numbers every week and participate in our draws.
Zero Fees: We don't plan on charging any fees on your earnings or deposits.
App-Centric: Manage all your activities easily through our user-friendly app, eliminating the need for branch visits.
Secure & Regulated: Our goal is to partner with established financial institutions to securely manage the backend operations.

Our Social Impact

Lodavo promotes financial stability and encourages consistent saving habits. The element of excitement and the potential to win big prizes caters to the younger generation's inclination for instant gratification, aiding in teaching them crucial life skills such as responsible money management.

The Banking Market in Canada

The Canadian banking landscape is vast, with the six largest banks having an annual net interest income of over $100 billion, up by 11% ^[4]. Additionally, 8 out of 10 Canadians primarily use digital channels for their banking transactions ^[5]. In the UK, a similar product called "Premium Bonds" is super popular and utilized by over a third of savers ^[6]. Based on these metrics, our Serviceable Obtainable Market (SOM) is calculated as follows: $102 billion * 78% * 33% * 1% = $265 million. By tapping into just 1% of the digital banking sphere, there is a ton of opportunity. We're targeting a slice of a very large pie, making Lodavo a compelling startup for both savers and investors.

The Founding Team

Lodavo was founded in Montreal in 2022 by two university students with complementary skills that truly encapsulate the 'fin' and 'tech' in fintech.

Benjamin Thomas, CEO: A finance student at Concordia University, Benjamin brings over 3 years of startup experience to Lodavo, having worked part-time for fast-growing startups during his studies. He first brought the idea for Lodavo to life during a pitch competition, recognizing the success of similar models in the UK and the US and believing that Canada could benefit from a similar concept.
Luke Freund, CTO: As a software engineering student at McGill University, Luke brings the technical expertise needed to make Lodavo a reality. He has a strong history of entrepreneurship and has participated in hackathons to use technology to solve problems. He is also in his school's co-op program and has completed one out of his three software engineering internships.

Partnerships and Backend

Our vision wouldn't be realized without strategic partnerships with financial institutions to manage backend operations securely. We're in active discussions to finalize these collaborations.

Banking as a Service

The rise of banking as a service platforms offers streamlined financial solutions which is a key enabler for Lodavo. Essentially, BaaS allows us to leverage the infrastructure of traditional banks to offer our own financial products. We don't have to worry about certain regulatory hurdles or complexities of financial transactions. BaaS providers handle all these back-end tasks with their existing infrastructure and processes, freeing us to focus on customer experience and our unique features.

The World of APIs

APIs (Application Programming Interfaces) are critical to our operation. They facilitate seamless integration between Lodavo and our banking partners, providing a secure and fluid experience for our users.

The Future of Fintech

Lodavo is a part of a broader fintech evolution that aims to democratize financial services. This wave of innovation is making complex financial products simpler and more accessible. We're planning to roll out more features that leverage cutting-edge technology to make saving not just beneficial, but also engaging and rewarding. The fintech landscape is ever-evolving, and with developments like blockchain, AI, and big data, the opportunities for disruption are limitless. Lodavo aims to be at the forefront of this revolution, constantly innovating to offer the best services to our customers while focusing on our core mission of fostering financial well-being through prize-linked savings.

Product Roadmap: Our Journey Ahead

Our product roadmap is a living document that outlines the major milestones we aim to achieve in the near future. We're committed to transparency and will keep our community updated on our progress.

Finalize App Prototype Design and Development: Our team is diligently working on the final touches of the Lodavo app prototype. This phase ensures that the app meets our high standards for user experience and functionality.
Launch Marketing Campaign for Waitlist Signups: To generate early buzz and interest, we'll be kicking off a targeted marketing campaign. This will help us build a strong community of early adopters eager to participate in Lodavo's prize-linked savings program.
Finalize Partnerships with Financial Institutions: Establishing the right partnerships is crucial for Lodavo's success. We're in advanced talks with multiple financial institutions to integrate our solution seamlessly with their backend systems.
Beta Test the App with a Select User Base: Before the public launch, we'll be conducting a closed beta test. This invaluable step allows us to fine-tune the app based on real-world user feedback.
Collect Feedback and Make Necessary Adjustments: Post-beta, we'll analyze the data and feedback collected to make any required improvements. This ensures that we're offering a product that not only meets but exceeds customer expectations.
Officially Launch Lodavo Nationwide: Once we're confident in the stability and effectiveness of our app, we'll proceed with a nationwide launch. At this stage, everyone will have the opportunity to experience the revolutionary way Lodavo makes saving both rewarding and fun.

How to Get Involved

Join our waitlist, share with your friends, and follow us on social media to stay updated. Let’s make saving money fun, together.