How Majority’s immigrant focus doubled users and is on track to reach $2 billion of deposits in a year
- Growing neobanks and fintechs that focus on niche consumer segments is difficult because t's become easier for big banks to branch out and start to cater to niche consumer segments.
- One immigrant focused fintech, Majority, has emerged stronger. Dive into how the firm has used a 'diaspora by diaspora' strategy and community engagement to double its user growth.
Over the past few years a number of neobanks and fintechs have popped up with a focus on niche consumer segments like students, doctors, and immigrants. The business idea is straightforward: Traditional FIs have left these consumer segments underserved and fintechs can swoop in to fill in the gap.
But growing these fintechs is difficult – for one, the fintech winter struck deep last year and halved the funding that was available to aspiring fintech brands. Secondly, when it comes to banking niche segments, it’s easier for incumbents to branch out and compete (if they so please) than for a new player to deepen its roots and remain standing in the face of headwinds.
But some fintechs are coming out of the fires stronger and better. For example, Majority, a fintech focused on banking immigrants in the US, recently announced that it secured $20 million in funding after doubling its user growth and is on track to hit $2 billion at the end of the year.
With the odds against the firm, how did Majority manage to grow?
Put the personal into the product
Majority’s founders have personally experienced what it means to immigrate and start life anew on different shores. Immigrants quickly learn that there is a maze that they need to navigate when they land in a new country, and Magnus Larsson, CEO and co-founder of Majority put his experiences like struggling with downloading the right local apps, calling home without paying exorbitant rates, and opening bank accounts into building the fintech.
Majority allows immigrants to open a bank account and get a debit card, community discounts, low-cost international money transfers and discounted international calling without needing an Social Security number for a membership fee of $5.99 a month.
