Mastercard and Citi Invest in MoCaFi

By McKenzie Carpenter Monday, March 1, 2021

To the average person, banks and banking services are readily available to anyone who seeks them. However, underserved communities may not have the same access as middle or higher income communities. Mastercard and Citi recently invested in Mobility Capital Finance, a fintech startup company, to help serve disadvantaged communities.

A woman using a smartphone and a tablet.

About the Fintech Business and Investment

Mobility Capital Finance, or MoCaFi, is a fintech startup company and app founded by Wole Coaxum to target the racial wealth gap inequality. In this, the fintech app business is focused on catering to the 50 million unbanked or underbanked individuals in the US. In addition, the startup company and app wants to empower black households and businesses in the US to gain financial independence over the next 10 years.

The fintech business and its app allow customers to build credit and spend smartly. In fact, the 2017 Economic Well-Being of US Households Report states that 40% of American adults cannot cover a $400 emergency because of a lack of savings. Additionally, the same report states that over one-fifth of adults are unable to pay all of their current month’s bills in full. Furthermore, one in ten Black and Hispanic individuals do not have a bank account.

As a result of these glaring inequalities in the financial services industry, the fintech business was able to raise $12 million in a Series A funding round. Tom and Wende Hutton, who were early investors in SoFi, are the lead investors in the fintech startup company. Mastercard and Citi Impact Fund are also investors among several others.

Mastercard and the fintech app business have been working together through the Mastercard StartPath Program, and the startup is part of Mastercard’s $500 million commitment to close the racial wealth and opportunity gap in the US.

CEO and founder of the fintech app startup company, Wole Coaxum, said, “...Our model reimagines how cities work with financial services to deliver banking and disbursement solutions to all their residents. Together we have the potential to play an important role in closing the racial wealth gap in the United States.”

With the new funding, the startup company plans to expand into large scale municipal engagements.

Other Engagements of the Fintech Business

This new funding for the startup company comes after the fintech business made an impact in other areas as well. In December 2020, MoCaFi partnered with The City and County of Honolulu to help those who experienced economic hardship due to the COVID-19 pandemic. In August 2020, the fintech business teamed up with Quest Communities in Atlanta to offer low-cost loans to assist renters with rent payments. In addition, the startup company works with the YWCA of Chicago to eliminate racism and financially empower women. 

Through all of this service, MoCaFi is able to prove its mission in helping vulnerable communities through providing financial and educational resources that assist with overcoming the racial wealth gap.

About the Author

Headshot of McKenzie Carpenter

McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.

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