An inclusive neobank serving Latino communities in the US
A new bank aims to help the US Latino community grow and thrive financially with Spanish-first services
Spotted: In the US, the average bank customer pays $7 (around €6.64) in banking fees every month, and many of these fees are paid by those who can least afford them – those whose funds drop below the minimum balance. For Latinos, things can be even worse, as those of Latin American descent in the US are far more likely to be unbanked than their white counterparts and are especially vulnerable to predatory lenders. Comun Bank was started specifically to address the particular needs of these customers.
Founded in 2021, Comun offers a Spanish-first service, removing the language barrier for many unbanked Latinos. The startup provides access to traditional financial services, such as a checking account connected to a physical and virtual debit card — but without requiring a social security number or any additional fees. This allows a greater number of Latinos to build a credit history.
Andres Santos, Co-Founder and CEO of Comun highlights: “Banking is a gateway to accessing many services that are vital to a person’s livelihood (…) Our goal is to empower families to be successful in both their finances and the U.S. with a financial partner that they can trust and understand.”
There is clearly an appetite for a more inclusive form of banking – Comun Bank recently announced that it closed a $4.5 million (around €4.3 million) seed round. The company plans to use the funds to build a financial hub with more resources for Latino immigrants in the U.S.
In recent years, there has been a renewed focus on developing a more inclusive and fairer banking system. Springwise has spotted innovations such as a banking platform that is accessible to immigrants, and a digital bank that donates to social causes and aims to help Black and Latinx communities.
Written By: Lisa Magloff
9th March 2023