The monetary sector is seeing an increase in challenger suppliers focusing on the distinctive wants of its 47M+ immigrant inhabitants in the USA. These innovators are addressing key challenges immigrants face in banking, reminiscent of constructing credit score, overcoming language obstacles, and accessing appropriate fee companies. Comun, a digital banking platform, stands out on this area by providing immigrant-focused monetary companies. Their choices embrace no-fee accounts with no minimal steadiness necessities, entry to an unlimited money deposit community, and remittance companies to seventeen Latin American international locations. This method has resonated strongly, leading to a powerful 52% month-over-month progress in energetic clients since launching. By tailoring their companies to the particular wants of immigrant communities, Comun will not be solely tapping into a major market alternative but in addition selling higher monetary inclusion in the USA.
AlleyWatch caught up with Comun Cofounder and CEO Andres Santos to study extra in regards to the enterprise, the corporate’s strategic plans, newest spherical of funding, which brings the corporate’s whole funding raised to $26M, and far, far more…
Who had been your buyers and the way a lot did you increase?
Our buyers had been Redpoint Ventures, ANIMO Ventures, Costanoa Ventures, FJ Labs, RTP International, and South Park Commons. Redpoint Ventures led our Collection A funding spherical of $21.5M.
Inform us in regards to the services or products that Comun provides.
At Comun, we provide an inclusive, low-fee, digital monetary resolution that features an FDIC-insured US checking account, VISA debit card, immediate remittance service, entry to Zelle, and entry to the most important money deposit community within the U.S., all accessible by way of a user-friendly, Spanish-first cellular app.
What impressed the beginning of Comun?
My cofounder, Abiel Gutierrez, and I had been impressed to start out Comun after going through monetary exclusion within the U.S. once we migrated from Mexico. Once we each got here to the US to check, we confronted a number of challenges opening a checking account, from a language barrier to ID necessities.
As we appeared into this matter, we discovered the Latino neighborhood has been underserved in accessing monetary services and products that match their distinctive wants. Many don’t have social safety numbers or credit score scores within the US, so the extra conventional methods banks assess and perceive potential clients don’t work for this neighborhood. Along with these obstacles, entry to monetary companies within the US could be extraordinarily expensive. Latinos are 3x extra more likely to go unbanked and pay a mean of 5x increased charges for primary companies. All these elements, together with our personal experiences, impressed us to start out Comun. We wish to present all Latinos within the US with easy-to-access and inexpensive banking options and assist them obtain upward mobility.
How is Comun totally different?
Prospects can open an account with over 100 IDs from Latin America – now we have a really complete KYC system that has allowed us to take away most of the friction factors immigrants usually face whereas additionally blocking fraudulent actors.
Our accounts don’t embrace charges – There’s a $0 opening payment, $0 minimal steadiness, $0 month-to-month payment, and $0 membership payment.
One of many largest and inexpensive money networks – our customers can deposit and withdraw money at ~100k areas across the US without spending a dime or at industry-leading costs.
Worldwide transfers (remittances) to 17 international locations in Latin America – relations in LATAM can obtain funds at a checking account or by way of a money community of over 300k retailers throughout the area at industry-leading costs in comparison with incumbents like Western Union.
Spanish-first buyer assist – clients can contact Comun 24/7 by telephone, e-mail, chat, and WhatsApp with native audio system.
Peer-to-peer immediate fee community – clients of Comun can ship cash simply to family and friends who even have Comun accounts for no value.
What market does Comun goal and the way large is it?
At Comun, our mission is to empower immigrants and their households to show their exhausting work into upward mobility. At the moment, the Hispanic inhabitants within the U.S. is greater than 63M and is predicted to achieve 111M by 2060.
What’s your online business mannequin?
Just like different fintech companies like Chime, our income comes from interchange charges and different product choices like our remittance program and money deposit community.
How are you getting ready for a possible financial slowdown?
We’re lucky that our remittance service and expanded money deposit community have diversified our income streams, lowering our reliance on interchange charges and demonstrating resilience towards 2025’s unsure macroeconomic headwinds. Our focus this 12 months is to proceed providing one of the best product expertise and increasing our remittance program into different international locations in Latin America. Now we have additionally been very considerate in increasing our staff and have remained lean regardless of our progress.
What was the funding course of like?
To be frank, we weren’t seeking to increase our subsequent spherical. We began receiving preemptive provides from buyers, which led us to launch a full course of. We obtained considerably extra curiosity than we may settle for, and each earlier investor determined to double down.
What are the largest challenges that you just confronted whereas elevating capital?
We really feel very lucky that our buyers imagine in our mission, which sparked this funding spherical.
What elements about your online business led your buyers to put in writing the test?
We obtained constructive suggestions from our buyers. A typical theme amongst buyers was our progress. Many VCs instructed us that we had been one of many fastest-growing client fintech corporations that they had seen just lately. We had been additionally instructed we had superior unit economics than most different corporations they evaluated.
What are the milestones you intend to attain within the subsequent six months?
Now we have aggressive targets set for this 12 months that can assist deepen our relationship with our clients. That features offering clients with extra alternate options on how they fund their accounts, enhancing our fraud detection capabilities, ensuring each buyer has an amazing product expertise, and together with extra international locations in Latin America the place clients can ship cash.
What recommendation are you able to supply corporations in New York that should not have a recent injection of capital within the financial institution?
Be laser-focused on what really issues. At Comun, we stripped away something non-essential and zeroed in on our core mission. We stayed near our clients and ruthlessly prioritized solely what would considerably transfer the needle. In powerful instances, the power to prioritize ruthlessly could make all of the distinction.
The place do you see the corporate going now over the close to time period?
We envision Comun because the one-stop trusted monetary accomplice for immigrants within the US. Nevertheless, to get there, we acknowledge that immigrants want entry to credit score options, the information on construct an amazing credit score rating and ongoing monetary recommendation, whether or not it’s round saving for retirement, shopping for a home, or constructing an emergency fund. We imagine we’re well-positioned to grow to be that trusted accomplice for our clients.
What’s your favourite summer season vacation spot in and across the metropolis?
I like happening street journeys with my spouse and daughter and discovering new locations round New York. There’s all the time one thing new to discover only a quick drive from town.
