Fair, a new US neo bank targeting recent immigrants from ethnic minority bakcgrounds, has raised $20 million ahead of a public launch slated for April.
Fair found Khalid Parekh is also founder of Amsys Group, a tech firm valued at nearly $350 million. When he arrived in the US from India with $100 in his pocket two decades ago, he struggled to not only get a loan but also to open a bank account.
Hence the establishment of Fair, which is designed so those who are new to the country, have no credit or need access to interest-free loans have options.
"Our fundraising success is partially attributed to the need for a platform like Fair," says Parekh. "Research tells us Blacks and Latinos pay twice as much in bank fees, while the racial wealth gap continues to grow. Too many people are suffering at the hands of our current financial model, and it doesn't have to be that way. Fair was intentionally designed to help all consumers keep more money in their pocket, so they can thrive. It's why our purpose and promise are in our name."
Fair banking services are provided by Coastal Community Bank and come with a Mastercard debit card.
Available in English, Spanish and Arabic, Fair will offer a range of services, including buy now, pay later micro loans, interest-free loans for bigger ticket items, early access to salary payments, and a debit card for kids.
The new bank also has an ethical dimension, reducing exposure to companies that are deemed to have a negative social impact and donating 2.5% of profits to refugee causes globally.
The source of the $40 million funding was not disclosed.