Majority Raises $19M to Support Mobile Banking for Migrants

Migrant Financial Access in the U.S.

Each year, over a million individuals immigrate to the United States. Upon arrival, these newcomers frequently encounter difficulties when attempting to establish bank accounts and gain access to standard financial services.

These obstacles faced by migrants, many of whom also have remittance needs, have been a long-standing global issue, persisting despite substantial governmental support initiatives.

A New Solution Emerges

An entrepreneur, previously successful in reducing international calling costs, now believes he has identified a solution to these financial access problems – a belief backed by significant investor confidence.

MAJORITY announced on Tuesday a successful seed funding round of $19 million. Valar Ventures spearheaded the investment, with participation from Avid Ventures, Heartcore Capital, and several founders of prominent Nordic fintech unicorns.

The MAJORITY Mobile Banking Service

The startup, founded two years ago, offers a mobile banking service also named MAJORITY. The company’s name reflects its mission to broaden financial inclusion.

MAJORITY operates on a subscription model, charging a monthly fee of $5. This provides users with a comprehensive suite of financial tools, including an FDIC-insured bank account featuring early direct deposit and no overdraft fees, a debit card, mobile credit options, and affordable international calling.

Addressing Apprehension and Building Trust

Magnus Larsson, founder and CEO of MAJORITY, highlighted a key reason for migrant communities’ reluctance to use traditional banks: a feeling of being unwelcome.

“Language barriers and unfamiliar cultural norms can contribute to this discomfort,” he explained. To overcome this, MAJORITY employs customer and sales representatives from diverse communities, ensuring they can effectively address customer needs.

Headquartered in Houston and Stockholm, MAJORITY also fosters a community within its app. This platform connects newcomers to the U.S. with familiar faces and a supportive environment.

Larsson stated that users can find resources on obtaining visas and locate local shopping options through the app’s community features.

Investor Confidence and Future Plans

James Fitzgerald, founding partner at Valar Ventures, commented, “The team behind MAJORITY has a proven track record of developing innovative solutions for immigrants.” He added, “We are confident that their continued growth will deliver much-needed and improved banking services to immigrants across the U.S.”

The service is now available in all 50 states and adheres to all relevant local regulations, according to Larsson, who previously led Swedish technology company Rebtel.

Sutton Bank serves as MAJORITY’s banking partner.

The newly acquired funding will be used to expand the product range and increase the team size, currently at approximately 80 employees.

“As a company founded by immigrants, for immigrants, we are committed to hiring diverse talent from the communities we serve. This is particularly important now, given the disproportionate impact of the pandemic on many immigrant populations,” Larsson concluded.