Mumbai: Zolve, a neobank that provides global access to financial services, has launched a bank account and credit cards for students and workers arriving in the United States. This will solve the problem of American immigrants who will not be able to get a credit card for months or not be able to open a bank account with a Social Security number.
Zolve is founded by Raghunandan G, founder of TaxiForSure, which was sold to Ola cabs in 2015 for $ 200 million. In February of this year, Zolve raised $ 15 million in a round led by Accel and Lightspeed with several top investors, including Cred founder Kunal Shah.
âThe Indians who migrate to the United States are mostly super-prime, according to their credit scores here. In the United States, they are treated like subprime clients because they have no credit history and would have to wait a while to build up a credit score, âsaid Raghunandan.
The neobank launched its pilot project at the beginning of the year where it obtained 43,000 clients against the 500 it expected. âOur expectation was for clients to maintain a balance of around $ 1,000, while we have also seen clients depositing up to $ 40,000 (Rs 30 lakh),â Raghunandan said.
Zolve offers banking services, but it is not a bank and has partnered with Community Federal Savings Bank (CFSB) for the downstream savings account. As the bank’s deposits are insured with the Federal Deposit Insurance Corporation, all deposits are covered up to $ 250,000. Besides the bank account and credit cards, customers also get the mobile banking app which is already integrated with Apple Pay, Google Pay, and Venmo.
âAnother challenge that Indians face is the requirement for a social security number by banks. We worked with the banks to accept a US visa, which is also a government issued document. With us, we can open American bank accounts and have access to American credit cards, while they are still in India, âsaid Raghunandan.
Going forward, the bank will also partner with partners to provide investment services on its platform. âOur goal is to be present in every customer’s cross-border service requirement. When it comes to remittances, we are faster because we provide banking services on both ends and there is no additional requirement for KYC. It’s cheaper because we trade closer to the wholesale exchange rate, âRaghunandan said.