New York-based fintech startup Comun is redefining the bank experience for Latine immigrant communities in the US and reimaging local banking for the digital world.
Founded in 2021 by Andres Santos, CEO, and Abiel Gutierrez, CTO, both of whom experienced financial exclusion upon migrating to the US, Comun has secured $9 million in funding to date.
Banking Disparities in the Latine Community
The Latine population contributes a staggering $3.2 trillion to the US GDP. This makes it the world’s fifth-largest economy, more than the GDPs of India, the UK, and France.
Nevertheless, Latine communities face significant challenges in accessing traditional banking services. They are more likely to be unbanked, pay higher bank fees, and fall victim to predatory loans than their white counterparts.
Comun highlights that 41% of Latine Americans have no credit score, limiting their financial growth and mobility.
Bringing back local banking to immigrants
Santos previously explained: “We built Comun to make it easier to thrive as an immigrant family in the US”.
The neobank boasts a team with over 50 years of combined experience in banking and technology services, including representation from various Latin American countries.
Comun aims to empower Latine families with a trusted Spanish-first banking experience designed with their unique needs in mind.
Traditional banks require customers to have a US social security number or proof of address. By contrast, customers can apply for a Comun account using 100 different identification types from Latin America, including foreign country passports, driver’s licenses however, and ID cards.
The neobank provides access to essential financial services, including checking accounts, physical and virtual Visa debit cards, direct deposits, and free ATM withdrawals and deposits.
“Our mission is to bring back local banking to immigrants in the US,” Santos told TechCrunch. “We think that is a model that has been dying at alarming rates over the last 30 years.”
“You’ve basically seen ‘too big to fail banks’ taking most of the share and going from 20,000 banks to less than 5,000 banks.”
Funding and Growth
Comun recently secured $4.5 million in funding in a round led by Costanoa Ventures, bringing its total funds raised to $9 million.
The company has achieved a net promoter score of 86—over four times the industry average for customer satisfaction.
TechCrunch also reports that Comun is experiencing a 60% month-over-month revenue increase, having processed over $75 million through its platform.
Comun’s unique approach extends to its partnership with Community Federal Savings Bank, providing a direct relationship that allows for the swift introduction of new services while ensuring compliance. The neobank is also building a vast network of partners, with over 90,000 physical locations to support cash deposits and withdrawals.
The neobank plans to use the new funds to hire additional employees, scale its banking services, and launch new products, including insurance.
Future plans also include venturing into credit and underwriting to further meet the evolving needs of its growing user base.
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