Funding of $2M obtained by Bloom Money to assist immigrants with financial saving plans.
UK Fintech Startup Bloom Money Secures $2 Million in Funding to Enhance Financial Services for Immigrant Communities
Outside investment worth $2 million has been secured by fintech startup Bloom Money, a groundbreaking venture aiming to modernize financial services for immigrant communities. Backed by investors such as Zinal, Octopus Ventures, January Ventures, and Pact, this funding was raised through crowdfunding.
The UK-based startup is focused on digitizing community-based savings circles and offering accessible financial tools to underserved populations. By embracing technological advancements, Bloom Money aims to democratize financial services for immigrant communities across Europe.
Innovative Approach to Guard Immigrant Wealth
Bloom Money was founded by financial industry veteran, Nina Mohanty, in February 2021. After extensive experience with banks like Starling Bank, Klarna, and Mastercard, Mohanty recognized that established financial institutions lacked understanding of immigrant communities' financial practices.
She highlighted that immigration communities tend to pool their money together in informal networks, focusing more on building a sense of community and collaboration than relying on conventional savings options or bank loans. To capitalize on this practice, Mohanty aims to transform savings circles into digital formats, making them more accessible and user-friendly.
Revolutionizing the Concept of Rotating Savings and Credit Associations
These informal groups, also known as rotating savings and credit associations (ROSCAs), revolve around people committing to save together. For instance, three friends might agree to contribute $100 each per month into a shared savings pot, amounting to $300 in total.
The first month, one friend can access the entire $300 for personal expenses, while the following month, the second friend receives the funds, creating a cycle among the group that can continue as needed. Efforts like these --- academically referred to as "money circles" --- are popular across various ethnic groups, with various regional names such as "chit funds" in India, "pardner" in Jamaica, "kameti" in Pakistan, "ajo" or "esusu" in Nigeria, and "hagbad" in Somalia.
Crafting a Legacy: Building Generational Wealth
Beyond simply digitizing savings practices, Bloom Money aspires to develop investment products for immigrants to foster wealth creation for future generations. Currently, the platform is also working on building users' credit profiles to facilitate lending opportunities, encouraging the investment of earnings from savings circles in assets like pension pots or gold.
By providing easy access to investment opportunities, Bloom Money aims to shift immigrants' focus from just remittances to building wealth for their future selves and generations to come.
Image: Nina Mohanty, Founder and CEO of Bloom Money -
- Utilizing the recently secured $2 million in funding, Bloom Money intends to revolutionize traditional financial services within the fintech industry by focusing on building innovative financial tools for immigrant communities.
- With the aim of democratizing financial services, Bloom Money, led by industry veteran Nina Mohanty, aspires to digitize community-based savings circles and create investment products, thereby empowering immigrants to establish generational wealth.
- Recognizing the prevalence of rotating savings and credit associations (ROSCAs) within various immigrant communities, Bloom Money plans to redefine these practices, making them more accessible and transforming them into a means for fostering financial growth.
