When Magnus Larsson got here to the U.S. round 20 years in the past, he realized simply how laborious it was for immigrants to open a checking account, a lot much less navigate the U.S. monetary system. Finally, in 2019, he co-founded MAJORITY, a neobank aimed toward making it simpler for brand new arrivals to get entry to cellular banking companies.
Central to MAJORITY’s companies are “meetups”, areas in areas with giant immigrant populations that MAJORITY targets. There they’ll meet in-person with advisors who usually are additionally initially from these nations and may also help them perceive the nuances of life within the U.S. They’ll additionally attend workshops and different occasions with compatriots.
To that finish, Larsson simply introduced the opening of a brand new meetup house—its fifth —in Laredo, Tex., the higher to offer monetary companies and different help for migrants crossing the border from Mexico. Located in a visual spot, “Will probably be the very first thing you see once you go the border,” says Larsson.
A Meetup for the Unbanked
To this point, the Laredo location has employed about ten advisors. They may assist with all the things from learn how to get a drivers license to signing up for a bank card. “We take into consideration the entire migrant journey,” says Larsson. That’s significantly necessary for a lot of Mexican immigrants, who could lack a checking account in their very own nation. Mexico is ranked quantity six on this planet of the least banked nations, based on Larsson.
MAJORITY opened its first meetups in 2020 in Houston, targeted on companies tailor-made for Nigerian immigrants, and in 2021 in Miami, for arrivals from Cuba. (It additionally helps Columbians and Venezuelans). Now, there are also meetup areas in Hialeah and Orlando. (All of the meetups are open to immigrants from any nation). Whole variety of advisors: about 250.
Later this yr, MAJORITY will launch a monetary handbook for Mexican immigrants, a model of its Migrant Handbook, that may deal with the nuanced wants and issues of Mexican immigrants. To that finish, it can embrace recommendations on all the things from learn how to finances, save and make investments to learn how to enroll youngsters in class.
For a $5 .99 month-to-month price, MAJORITY subscribers get cellular banking companies, together with a checking account with no overdraft charges or minimums, a Visa debit card, entry to a community of ATMs, remittance companies and worldwide calling. Subscribers have to have a government-issued ID and a proof of a U.S. handle.
Funding for Growth
In 2015, Larsson grew to become CEO of Swedish know-how agency Rebtel, which permits individuals to make worldwide cellphone calls at a low-cost. (He’s now the board chairperson). The preliminary funding for MAJORITY got here from Rebtel’s founders and enterprise capital funding.
MAJORITY additionally not too long ago introduced $9.75 million in funding from Valar Ventures and Heartcore Capital. The brand new funding serves as a high as much as MAJORITY’s Collection B spherical led by Valar Ventures raised in September final yr. Whole raised: over $86 million in fairness. The most recent funding ought to assist Larsson develop his companies elsewhere alongside the Texas-Mexico border.