Dive Brief:
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Majority, a challenger bank that has been serving Houston's Nigerian immigrant community for the past six months, is looking to expand its services across the U.S.
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The bank said it plans to build brick-and-mortar centers in New York, Chicago, Los Angeles, Washington and Miami and promote its services to the areas' immigrant communities.
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The bank's mobile phone-based account costs $5 per month and features unlimited remittances, as well as international calling services.
Dive Insight:
Majority has been servicing immigrants in Houston since April as part of an invite-only beta program, according to Business Insider.
Through a partnership with Ohio-based Sutton Bank, customers receive a Federal Deposit Insurance Corp.-insured bank account and a Visa prepaid card. Customers can also access 50,000 in-network ATMs across the U.S.
The bank, which is funded by Swedish technology company Rebtel, said it expects the banking service will be available nationwide in a couple of months.
Majority CEO Magnus Larsson, who also heads Rebtel, said the bank aims to solve problems many immigrants face in the U.S.
"You need a bank account. You need to be able to send money home. You need to be able to call back home," he told American Banker. "I think we're building a challenger bank for people who really need a bank."
The bank has recruited 200 ambassadors to help with the nationwide rollout, it said. The ambassadors will welcome new customers and help with translations.
The average global remittance rate is around 7%, according to Business Insider. Majority customers' remittance fees are covered in the $5 monthly membership fee. The bank said it also won't charge overdraft fees.
Majority will be headquartered in Houston.
Other remittance companies, such as MoneyGram and TransferWise, are hoping to make their mark in the U.S.
Dallas-based MoneyGram last month partnered with Visa to provide direct-to-debit card payments in the U.S.
U.K.-based TransferWise also entered the U.S. banking market last month.
