Majority is a unique digital platform exclusively meeting the banking and financial needs of the migrants in the US:
Majority is a mobile-only bank exclusively for the immigrant population in the US. It had recently raised $37.5 million in a Series B funding round, taking the total funding to $83.5 million.
The neobank has several bundled services, including an FDIC-insured account, debit card, free international remittance, community discounts and discounted international calling. It came to be established in 2019 by Magnus Larsson, essentially to serve the large Nigerian immigrant community in Houston. Later it set up 3 new locations in Florida and added one in Houston.
UNIQUE MEET-UP CENTERS
The bank has a unique strategy to attract its target clientele – physical ‘meet-up centers’ in areas where large immigrant population is located. It has local advisers, who help the customers to onboard and support them in various other ways in meeting their banking needs. It charges a monthly subscription fee of $5.99 for its services.
The neobank allows users to register for an account without a Social Security number or U.S. documentation. Applicants only need international government-issued identification and some proof of U.S. residence. It has a partnership with a well-known US firm for the identification verification.
Majority has competition in its niche segment, that is, servicing the immigrants, like Fair, TomoCredit and Welcome. However, these entities actually focus on the Hispanic community largely, while Majority caters to the needs of all migrants.
The bank declares on its website: “… Oure mission is to give you tools, resources and support to thrive in a new country. We believe that everyone should be valued for their positive impact on the world and not judged by their country of origin.”
Some of the salient aspects of an account in Majority are:
- a secure Visa debit card with no international transaction fees;
- withdrawals with no transaction fees at select ATMs;
- no fees for accidental overdrafts;
- no opening deposit or minimum balance requirement;
- free calls to more than 20 countries using the app.
Majority has partnered with Sutton Bank, a regulated bank insured by the FDIC.
When a person becomes a member of the neobank, he can add money into his account by linking the bank account, depositing cash at select locations, or depositing money with another card. Using the Majority app, he can transfer money internationally. Majority does not charge any fees for providing wire transfer services. However, it may send the money at a lower exchange rate.
WORLDWIDE USE OF DEBIT CARD
Similarly, its dedicated Visa debit card can be used worldwide to pay for goods and services. The card is accepted by merchants in over 200 countries and Majority waives all international transaction fees when the card is used abroad. Also the debit card provides Majority’s customers access to a network of over 55,000 fee-free ATMs, which can be located using the app’s built-in ATM navigation map.
The mobile app is again unique. In addition to managing the banking services, it allows a customer to send phone minutes and internet access to the mobile phones of friends and family back home. A customer can also make free international calls to over 20 countries, including Mexico, Canada, and the UK.
The Majority app offers a customer the following signature features, among others:
- Fee-free access to several digital finance services that most traditional providers would levy a fee.
- There is no overdraft fee, even when a customer accidentally exceeds his current account with the Visa debit card.
- The Visa debit card allows the customer to use over 55,000 ATMs across the United States free. There is a GPS map on the app to locate these ATMs. There, is, however, a fee for using international ATMs and ATMs that are not in Majority’s network.
- Using the mobile app, a customer can easily send money to friends and family abroad without any fee or service charge. However, the Majority does not exchange foreign currency at the mid-market rate but it will be exchanged at a slightly poorer rate and Majority will keep the difference.
The Visa debit card has exclusive partnerships with U.S. businesses and retailers that gives the customers deals when spending with the Majority card anywhere in the United States. Majority charges zero international transaction fees so when migrant is at home visits his family abroad, the card can be used while shopping.
Magnus Larsson, while launching Majority, incidentally in Stockholm, said: “Migrants, by their very definition, are the most ambitious people in the world, striving for success in a new country – but they are lacking the necessary tools. Migrant-relevant financial services come with extensive fees that feel overwhelming for all people, but even more intimidating for those trying to navigate an unfamiliar system. At Majority, we seek to remove the uncertainty that comes with international financial services and do our part to better facilitate a world where people are valued on their positive impact, not their country of origin.”
This article has been compiled based on publicly available information on the web, particularly the bank’s own website.