Fair, the multilingual neobank that aims to address racial inequality in financial services, has raised $40 million funding.

The US-based membership platform, which is is available in English, Spanish, and Arabic, includes free account-to-account international money transfers, and interest-free loans.

The FinTech said that it will open early bird membership enrolment in March, with a public launch in April.

To join, members will pay a one-time annual or monthly membership fee based on their preference.

Khalid Parekh, founder and chief executive, said that as an immigrant entrepreneur he saw how the opportunity gap limits advancement.

"Our fundraising success is partially attributed to the need for a platform like Fair," said Khalid Parekh, founder and CEO. "Research tells us Black people and Latinos pay twice as much in bank fees, while the racial wealth gap continues to grow."

He added: “Too many people are suffering at the hands of our current financial model, and it doesn't have to be that way. Fair was intentionally designed to help all consumers keep more money in their pocket, so they can thrive. It's why our purpose and promise are in our name."
Parekh is also the founder of AMSYS Group, a $350 million tech firm.

According to the start-up, Fair is designed so those who are new to the country, have no credit or need access to interest-free loans have options. Free account-to-account international money transfers

"In addition to fixing the banking practices that cost all of us, as an immigrant entrepreneur, I saw how the opportunity gap that can limit advancement," Parekh said. "Understanding complex fee structures and the fine print is difficult for many people born in the U.S. Qualifying for a business loan is impossible for an immigrant with no credit history. Falling into a cycle of debt is inevitable with high-interest loans. Part of the vision for Fair is to address these inequities."

The bank also practices socially responsible investing (SRI), which is an approach to investing that reduces exposure to companies that are deemed to have a negative social impact (e.g., companies that profit from poor labour standards, harmful products such as tobacco or environmental devastation).

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