Extends comprehensive digital disbursement platform for governments and corporations to reach unbanked and underbanked individuals
Opportunity to strengthen access to range of banking services via MoCaFi
NEW YORK, June 8, 2023 /PRNewswire/ -- BNY Mellon (NYSE: BK) and MoCaFi, a Black-founded fintech platform leading financial empowerment for traditionally underserved communities, have formed a strategic alliance to extend payment options to unbanked and underbanked communities in the U.S.
BNY Mellon's Treasury Services business will now provide federal, state and local governments, as well as corporate clients, with a digital disbursement payment service that reaches individuals without current access to basic financial services through MoCaFi's offering. The alliance reflects BNY Mellon's broader commitment to financial inclusion, helping to connect unbanked and underbanked individuals and communities to high-quality financial services.
According to a recent Federal Deposit Insurance Corporation survey, an estimated 4.5 percent of U.S. households (approximately 5.9 million) were "unbanked" in 2021, meaning that no one in the household had a checking or savings account at a bank or credit union. Further, an estimated 14.1 percent of U.S. households (approximately 18.7 million) were "underbanked" in 2021. An underbanked household is one that has a bank account but lacks adequate access to other traditional financial services.
The new disbursement service, offered through BNY Mellon's Vaia platform, allows governments and corporate clients to seamlessly distribute payments and disbursements, such as disaster relief financial aid and employee payroll to individuals without financial services access. These often-vital cash injections can now reach the communities where they are needed most, timely and effectively. The opportunity to also receive basic banking services—including an FDIC-insured account as well as a debit card and credit reporting capabilities—will also be available for unbanked and underbanked individuals through the MoCaFi platform.
Jennifer Barker, CEO of Treasury Services, BNY Mellon said: "The inability to provide digital payments to a significant portion of the U.S. economy has been a major hurdle for both public and private sectors. Through our commitment to innovation, we met this challenge head on and are thrilled to join forces with a fintech doing outstanding, tangible work in our communities. Not only does this fit with BNY Mellon's values of making the financial ecosystem stronger, better and more accessible, it also promotes financial equity across the country for people in need."
Wole Coaxum, CEO and Founder of MoCaFi, said: "Our alliance with BNY Mellon will accelerate our mission to reduce the racial and social wealth gap through increasing pathways to wealth for underserved individuals, especially communities of color. Access to modern banking services is one of the best approaches to making our economy more inclusive, and by working with BNY Mellon we are helping to provide opportunities to as many people as possible. Further, by joining the Vaia platform, we are creating a more seamless experience for corporations and municipalities from New York City to New Orleans and beyond to receive and distribute cash to a new pool of consumers."
About BNY Mellon
Established in 1784, BNY Mellon is America's oldest bank and the first company listed on the New York Stock Exchange (NYSE: BK). Today, BNY Mellon powers capital markets around the world through comprehensive solutions that help clients manage and service their financial assets throughout the investment life cycle. BNY Mellon had $46.6 trillion in assets under custody and/or administration and $1.9 trillion in assets under management as of March 31, 2023. BNY Mellon has been named among Fortune's World's Most Admired Companies and Fast Company's Best Workplaces for Innovators. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. Additional information is available on www.bnymellon.com. Follow us on LinkedIn or visit our Newsroom for the latest company news.
MoCaFi's mission is to help excluded communities create wealth through better access to public, private, and social capital. MoCaFi's Financial Services as Infrastructure™ platform works with governments and institutions to provide cash assistance, mobile banking, and financial programming to individuals and families. MoCaFi has disbursed over $100 million in financial resources to underserved communities across 15 cities and counties across the country.
MoCaFi has been named to FORBES Fintech 50: Most Innovative Fintechs of 2021, FORTUNE's Impact 20 (2021) and The Plug's 100 Promising Black-led, High-Growth Tech Companies focusing on Social Impact (2023). For more information, visit www.mocafi.com
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SOURCE BNY Mellon