US-based digital bank Greenwood has acquired Kinly, a mobile banking platform targeting underserved communities, for an undisclosed amount, according to Fintech Global.
Greenwood is a digital banking platform that aims to serve Black and Latinx communities. The deal brings together two of the largest Black-owned fintechs, but the terms of the acquisition were not disclosed.
Kinly, founded in 2020, offers a mobile banking app that provides a range of financial services, including budgeting tools, peer-to-peer payments, and mobile check deposit. The platform focuses on accessibility and affordability, striving to provide low-cost banking solutions to communities that have been historically underserved by traditional financial institutions.
Greenwood plans to expand its product offerings and increase its reach to a wider audience through the acquisition. The company, which launched in October 2020, has already gained significant momentum, amassing over 500,000 sign-ups to its waiting list. Greenwood has raised USD 20 million in funding to date, with investors including SoftBank, JPMorgan Chase, and Truist Ventures.
The founder and CEO of Greenwood expressed his excitement at welcoming Kinly into the Greenwood family. He believes that the acquisition represents a significant step forward in the company's mission to empower Black and Latinx communities by providing them with access to affordable financial services and opportunities for wealth-building.
With the acquisition of Kinly, Greenwood aims to continue its upward trajectory, building on its early success, and further establishing itself as a digital banking platform serving underrepresented communities. By providing access to mobile banking and a suite of financial services, Greenwood hopes to promote financial inclusion and create greater opportunities for wealth-building for Black and Latinx individuals and families.
In March 2021, Greenwood raised USD 40 million from a host of US financial institutions, including Truist Financial, JPMorgan Chase & Co, Bank of America, Wells Fargo, and Citigroup. PNC Financial Services Group, Mastercard, Visa, FIS, Banco Popular, as well as several venture capital firms such as SoftBank’s Opportunity Fund, also participated in the round.
According to Reuters, Greenwood was created to provide online banking services to help close the wealth gap faced by Black and Latino communities in the US. Greenwood is one of several digital banks that have emerged over the past year focused on consumers and businesses that have traditionally been underserved by the mainstream financial sector. Other online banking startups include First Boulevard, Daylight, and Cheese.
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