Immigrant banking platform Majority raises USD 20 mln

The increase of immigrants to the United States — some 50 million total foreign-born people live in the US now, according to immigration think tank Center for Immigration Studies — presents an opportunity for startups to tailor financial services to this population. Majority has been founded in 2019 with this mission in mind.

An easily obtainable bank account

For a USD 5.99 per month membership fee, migrants can open a Majority bank account and get a debit card, community discounts, fee-free international money transfers, and discounted international calling. There is also a peer-to-peer pay feature.

Accounts don’t require a Social Security number or US documentation, just an international government-issued ID and proof of US residence. They also don’t have overdraft fees or minimum balance requirements. In addition, users have access to Majority’s ‘Advisor Programme,’ a network of trained support staff nationwide, who are immigrants themselves.

Majority’s officials said that for many customers, they are the primary relationship they have when it comes to their financial services, and services to connect back to their own country. Most migrants are hit by a lot of predatory fees. When it comes to financial services, remittances and moving money cross-border, one pays a fixed fee, but Majority takes away the other fees.

Majority’s growth and future plans

Since 2023, Majority has experienced significant growth, tripling revenue and doubling users. The company reached USD 40 million in annual revenue and USD 200 million in monthly deposits, with transaction volume growing fivefold and remittances fourfold in 2023. To support further growth, Majority raised USD 20 million in additional capital, comprising USD 12.5 million in equity and USD 7.5 million in debt, bringing total equity funding to USD 90 million.

With the new funding, the company intends to continue developing products, including helping users establish a credit score and gain access to credit products. It is also planning to build products for redundancies to better manage risk.