Challenger bank Fair has closed a $20m investment round and announced that it will open early bird membership enrolment in March as it eyes April launch.
“Our fundraising success is partially attributed to the need for a platform like Fair,” said Khalid Parekh, founder and CEO at Fair.
“Research tells us Blacks and Latinos pay twice as much in bank fees, whileÂ the racial wealth gap continues to grow. Too many people are suffering at the hands of our current financial model, and it doesn’t have to be that way. Fair was intentionally designed to help all consumers keep more money in their pocket, so they can thrive. It’s why our purpose and promise are in our name.”
Inspired by his own experience of struggling financially when he emigrated from India to the US, Parekh has designed Fair to make it easier for newly arrived expats to open bank accounts and access interest-free loans.
“In addition to fixing the banking practices that cost all of us, as an immigrant entrepreneur, I saw how the opportunity gap that can limit advancement,” Parekh said.
“Understanding complex fee structures and the fine print is difficult for many people born in the US. Qualifying for a business loan is impossible for an immigrant with no credit history. Falling into a cycle of debt is inevitable with high-interest loans. Part of the vision for Fair is to address these inequities.”
Parekh is also founder of AMSYS Group, a tech firm valued at nearly $350m, according to Fair.
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