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MoCaFi: Providing Equal Opportunity for Financially Underserved

Wole Coaxum, Founder and CEO, MoCaFiWole Coaxum, Founder and CEO
“It is expensive to be poor.” - James Baldwin, American Novelist.

This famous quote aptly describes the economic situation of the unbanked and underbanked people in America, primarily belonging to African-Americans and other minority communities. They helplessly rely on 'alternative financial services like check cashers and pawn shops to get their hands on some lending capital. On average, they tend to individually spend over $40,000 alongside excess fees in their lifetime, which is way too expensive for someone who lacks financial security. According to study reports, African-Americans tend to borrow capital at a loan rate that is three to four times higher than their white counterparts due to the lack of enough credit scores.

But how can we bridge this wealth gap?

MoCaFi has the answer.

MoCaFi bridges the gap by providing cost-effective and high-quality services like fee-free check cashing, FDIC-insured bank accounts, Mastercard-branded debit cards, demand deposit accounts, and cashback rewards to support Black and Latinx-owned businesses, lender-supported homeownership programs, rental payment reporting to credit bureaus, and city-based income relief programs. “We’re changing the game here when it comes to providing financial support to affected communities. Our company collaborates with the credit bureaus to allow people to get credit against their biggest expenses, such as rent, and reduce the cost of borrowing. We’re bringing more people into our low-cost banking framework that offers them security,” mentions Wole Coaxum, Founder, and CEO, MoCaFi.

The conception story of the company is an interesting one. Having grown up in similar circumstances, Coaxum always knew that he needed to do something to make the lives of the underserved communities better. Then, in 2014, protests erupted in the nation following the shooting of an unarmed black teenager, Michael Brown. This, in many ways, highlighted the sensitivity of the world to social inequities and drove Coaxum also to highlight the economic justice agenda to the society. “In terms of equity and justice, and my training as a financial services executive, I thought that I could bring these two things together and start a company that would enable me to reimagine financial services for communities who have been underserved in this nation.


We’re bringing more people into our low-cost banking framework that offers them security.


And that's sort of how MoCaFi came about,” shares Coaxum.

In this context, Coaxum shares a case study. The Los Angeles mayor, Eric Garcetti, announced the conception of the Contactless Government Executive Directive in the wake of the COVID-19. The program aimed to make critical services, including payment, Angeleno Account (a universal login that streamlines the city services experience), direct assistance, and so on, available online for the residents. But for a city where 20 percent of the neighborhoods don’t have access to banks, such initiative was bound to hit rough waters. This is when MoCaFi came in and took the rein of overseeing the card and app's implementation and providing safe debit cards for the population without bank accounts. The company enhanced the facilities provided by Angeleno with a reward program that allows users to avail discounts on transactions. What’s more? The users can start making purchases through Google Pay and Apple Wallet apps even before receiving their physical debit cards.

Scripting many such inspiring stories, MoCaFi aims to close the wealth gap across the U.S. The company has established a free ATM network through partnerships with Allpoint, comprising 65,000+ ATMs in over 60 locations, including New Jersey, New York, South Carolina, and Pennsylvania. It allows account holders to cash their funds whenever they want. Also, the company has partnered with the reputed Wells Fargo, where the latter allows MoCaFi cardholders to collect cash from their ATMs free of charge. The company also provides MoCaFi Mobility bank accounts to allow account holders to make no charge ATM withdrawals, make purchases, and load their funds.

Taking pride in the level of services it offers, MoCaFi is currently looking forward to taking more cities, both large and small, under its wings next year and extending its footprint to the international market soon. MoCaFi is actively expanding its team by recruiting people belonging to diverse communities, including Black, Asian, Latinx women, Native Americans, and others, to power itself up with their different perspectives, skillsets, and experiences. The company also has plans to provide a financial education program for the unbanked and underbanked communities. “Having more people in the financial mainstream with credit scores and financial stability will reflect who they are as individuals and not what the society marginalizes them to be. People will be able to take care of their families, make investments, make purchases, take loans, and start businesses. All of this will in turn make the overall economy better,” concludes Coaxum.

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Top 10 Fintech Solution Companies - 2021

Company
MoCaFi

Headquarters
New York, NY

Management
Wole Coaxum, Founder and CEO

Description
MoCaFi is a financial services platform for the 110 million Americans who are experiencing economic hardship and have no way out. Their platform includes a prepaid Mastercard, an FDIC-insured bank account, a money management app, bill payment for credit building, and personal wealth coaching. They are assisting communities in spending wisely, building credit, and living prosperous lives