Majority, a digital banking platform focused on serving immigrant communities, recently introduced its products to US customers, following a four-month beta testing period.
In order to expand its existing business operations, Majority says it remains focused on two major drivers: physical meetup spaces and brand ambassadors since the bank has no physical branch locations.
Magnus Larsson, CEO at Majority, stated:
“If you want to build a successful business focusing on these communities, you need to be part of those communities. The reason a lot of underbanked and migrant communities we work with don’t walk into the brick-and-mortar [bank branches] is because of trust factors.”
With the digital banking platform’s public launch, Majority says it will continue to incorporate new features, such as the ability to make early direct deposits and the options to transfer money into a Majority account from an external account. Larsson told Bank Innovation that Majority’s first physical meetup space will be introduced this month in Houston, Texas.
The meetup space in Houston, which also serves as the firm’s US headquarters, has been designed specifically for establishing trusting relationships with immigrants, who tend to face language and cultural barriers and challenges when trying to work with the US financial system.
Larsson noted that the meetup space will be used to host various promotional events including food fairs, art exhibits, fashion shows and educational initiatives for supporting financial literacy. The Majority team consists of experienced advisors and brand ambassadors who are also part of the US-based immigrant communities.
Majority clients will get a prepaid Visa spending card and will also get access to over 55,000 ATMs as part of a $5-per-month paid plan. Clients can make remittance payments to several African countries including Nigeria, Ghana, Kenya, and Senegal without having to pay extra fees, which is notably a service the firm intends to offer in 15 other countries in 2020.
Majority also provides users with the option to make international calls, at no cost. This service is reportedly being offered in over 25 countries. The firm’s partner banking institution is the Attica, Ohio-headquartered Sutton Bank, which has teamed up with Monzo’s US division and Square. The firm is presently working cooperatively with immigrant communities to determine which products and services Majority may introduce next.
The firm’s main source of revenue is fees it charges for subscriptions, and it also makes money from interchange fees. Majority claims it has over 5,000 clients. Larsson noted that the company intends to launch a second meetup space in Miami at some point this year.
Larsson revealed that Majority is a self-funded project made possible through Rebtel, a sister international calling firm, where he serves as chief executive. Rebtel has reportedly secured $28 million in funding.