#StartupsEverywhere profile: Wole Coaxum, Founder & CEO, Mobility Capital Finance, Inc. ("MoCaFi")
This profile is part of #StartupsEverywhere, an ongoing series highlighting startup leaders in ecosystems across the country. This interview has been edited for length, content, and clarity.
Addressing the racial wealth gap through accessible financial services technology
Based in Newark, N.J., MoCaFi is a fintech company that provides a platform and tools designed to make financial services more accessible for all communities. MoCaFi—and its Founder & CEO, Wole Coaxum—are particularly focused on developing tools and technology that can help close the racial wealth gap that persists within the U.S. We spoke with Mr. Coaxum about what led him to MoCaFi, the importance of access to modern banking tools, and how public-private partnerships can help reach underresourced communities.
Could you tell us about your background, how it led you to MoCaFi, and what your journey as a startup founder has looked like so far?
My work experience began with work at Citigroup, Willis North America, and JPMorgan Chase. However, my life has always been informed by a passion for serving those overlooked in society and influenced by my family, whose bloodline features entrepreneurs and business and community leaders.
I recall being in my office in 2014 at JPMorgan Chase as the events surrounding the killing of teenager Michael Brown in Ferguson, Missouri, devolved into rioting and neighborhood uprisings. As I watched the violent clashes and looting, I became concerned about the social factors that contributed to the environment in which the Michael Browns of this country exist. For example, there are more payday lenders and check cashing companies in many of these communities than banks.
My concern led to a calling, and that calling has manifested in a movement. When MoCaFi first began, unbanked Americans were not given much consideration. When we discussed the millions of people who are cash-dependent or relied on predatory institutions such as payday lenders, we were often met with “oh, I never thought of that,” or “wow, that’s a problem!” Now, there’s a much greater awareness of unbanked individuals and underbanked communities in banking, finance, and government.
Tell us about MoCaFi. What is the work you are doing?
Mobility Capital Finance, Inc., which we lovingly refer to as MoCaFi, is a Black-owned fintech that is committed to closing the wealth gap in this country by bringing financially underserved communities in the United States into the digital banking economy.
Our business model addresses limited economic mobility and financial equity in traditionally underserved communities across the U.S. We have partnerships with Sunrise Banks, N.A.—our sponsor bank, Mastercard, Citi, Wells Fargo, Galileo, and VanillaDirect Pay, that have supported us as we have expanded our platform to meet the demands of overlooked Americans. Most recently, we also launched a new initiative with Rocket Mortgage, which will allow us the opportunity to work with aspiring homeowners across the nation.
We get questions about how our platform and product works, but people often don’t realize there are actually multiple components to the services we provide. We have a mobile banking product that is a no-fee demand deposit account, debit card, and mobile app. Account-holders may use it just like a traditional Debit Mastercard. In addition, we have partnered with the Allpoint network for fee-free access to 55,000 ATMs and 80,000 retail load locations across the U.S. We understand that allowing rent reporting as a credit factor can significantly improve credit scores, so the mobile banking platform also offers mobile check deposits, no-fee bill pay, and rent payment reporting to Equifax and TransUnion.
MoCaFi also offers an Immediate Response Card, which is a prepaid debit card used to transfer subsidies or benefits to cardholders in “real-time.” Incidentally, several cities are currently using this platform for Universal Basic Income or Guaranteed Income programs. A municipality or a non-profit pre-funds a disbursement account, provides a list of recipients, and then monies are transferred electronically—without a complex card enrollment or distribution process. This doesn’t require a cardholder’s personal information; balances may be tracked by card number only. The recipient does not have to go through a “Know Your Customer” process because the monies are coming from the city or non-profit. Cardholders also have the option for both an electronic card for immediate use and physical payments card.
Finally, we offer ONE CITY, which is our innovative Financial Services as Infrastructure platform. The ONE CITY program allows low-cost, efficient delivery of government benefits to supported residents, businesses, and city employees. These bespoke products—such as the Angeleno Connect program in Los Angeles—are designed to foster financial & social inclusion for all residents. We are especially proud of our partnerships with municipalities such as Los Angeles, Honolulu, H.I., Birmingham, Ala., Columbia, S.C., Newark, N.J., Paterson, N.J., and organizations such as the YWCA of Metropolitan Chicago, and the Bedford Stuyvesant Restoration Corporation as part of our efforts to expand access to financial services across the country.
We understand you are part of the Start Path accelerator program. Could you tell us a bit about that program and what it has meant for MoCaFi?
Research says that the global market for fintech products and services is expected to hit $310 billion in 2022. This is a fast growing technology sector. Mastercard’s Start Path accelerator, which focuses on helping develop fintech startups, has been a critical partner to MoCaFi and integral to our successful growth and expansion. Their work to co-innovate with us and other fintechs to reshape the future of commerce has allowed us to scale our platform to address the needs of marginalized communities—especially during the pandemic. Moreover, Start Path’s support of our vision to serve Americans whom financial institutions have overlooked has allowed us to offer our financial solutions in markets from Alabama to California at a much faster pace than if we didn’t have their assistance.
Are there any tech startup issues and concerns that you believe should receive more attention from local, state, and federal policymakers?
We’ve spoken with leaders on the federal, state, and local government levels over the past 18 months. We’ve found that leaders—including some at federal agencies—recognize that of the more than 14 million unbanked Americans across the U.S., people in underserved communities are the most negatively impacted when trying to receive Economic Impact Payments (EIP) or, most recently, the Child Tax Credit payments, simply because they cannot access them. Policymakers and lawmakers appreciate the opportunities that tech startups, especially fintechs, offer to address the needs of these marginalized communities.
We believe public-private partnerships should be advocated for and supported more, as they are oftentimes a gateway to solving many of the challenges that the government has faced when seeking to connect with hard-to-reach Americans. Policymakers should direct more businesses towards government certification programs that facilitate these alignments in various sectors.
MoCaFi’s website mentions that “[w]hen a storefront in your neighborhood is empty or an e-commerce brand we love shuts down its website,” that’s a lost opportunity to invest in community and culture. How is MoCaFi supporting these local and Internet-based small businesses?
In general, we are committed to facilitating the creation of economic ecosystems. We understand the importance of community economics to break down barriers to wealth. So we feature a shop-local rewards program, REPRESENT, that incentivizes cardholders to purchase from our network of local Black & Latinx-owned businesses. This program—specifically tailored towards small businesses—is to keep consumer dollars within disenfranchised communities. Through REPRESENT, MoCaFi has formed partnerships with small, minority-owned companies to offer our cardholders the ability to earn up to 3 percent cashback on each purchase they make with a MoCaFi REPRESENT Brand.
We know MoCaFi’s goal is to focus on the financial enablement of historically under-resourced communities. What are the policies you think that lawmakers should be pursuing to better support entrepreneurs & startups that come from these communities, particularly as we begin to emerge from the pandemic crisis that has only expanded inequitable economic gaps?
My great-grandfather, Anderson Hunt (A.H.) Brown was one of the United States’ first Black real-estate moguls, and I have always looked up to him for his willingness to utilize his wealth to build infrastructure within the Black community. In 1924, he led the opening of the Community Hospital—the first modern hospital for Black residents in Charleston, W.Va. He recognized that predictable environments tend to produce predictable outcomes; thus, the best way to address systemic inequalities is to invest in the institutions and infrastructure within disenfranchised communities. He fostered the spirit of innovation within his city, increasing living standards by building high-quality commercial properties and leasing office space to fellow Black entrepreneurs in Charleston. My great-grandfather then used the wealth that he made by rebuilding his community to launch legal battles to nullify segregation laws in Charleston. And amid all this, one of his biggest obstacles was the discriminatory lending practices that did not allow him to receive banking loans.
I see our work at MoCaFi as an extension of my great-grandfather’s vision of an egalitarian society. In the spirit of his vision, lawmakers should utilize the 10-20-30 Persistent Poverty Formula, coined by the U.S. Congressman, Jim Clyburn. The 10-20-30 formula, first introduced in the American Reinvestment and Recovery Act, states that 10 percent of Rural Development investments be made in persistent poverty communities—counties where 20 percent or more of the population had lived below the poverty line for the last 30 years. When possible, Congress should include the 10-20-30 formula in future funding proposals and legislation; an approach that will help support economic growth, mobility, and development in the communities that need it most.
What are MoCaFi’s goals for the future?
Our initiative that is launching next month, “Angeleno Connect,” is designed to tackle systemic economic inequality and the disproportionate impact that the COVID-19 pandemic had on the residents of the Greater Los Angeles area. This program will provide the nearly 600,000 residents in 46 communities across Los Angeles County who do not have access to a bank or credit union with two different products: The Angeleno Connect MoCaFi Immediate Response Incentive Mastercard®, which acts as a disbursement card that enables the City of Los Angeles to efficiently distribute COVID relief and Emergency Rental Assistance Program funds to residents. And the Angeleno Connect MoCaFi Debit Mastercard, a debit card that allows the user to receive no-fee direct deposits at and make no-fee cash withdrawals from any Allpoint or Wells Fargo ATM in Los Angeles.
MoCaFi is also working with local businesses in L.A. to digitize the financial ecosystem. In Paterson, New Jersey, we partnered with Mayor Andre Sayegh to launch a “guaranteed income” pilot program that provided 110 residents with $400 per month for a year. Our initiatives in L.A. and Paterson are just the beginning. We have plans to replicate this in cities across the nation. We are working to achieve a more equitable and economically just country by bringing our products and initiatives to many more major cities around the United States.
All of the information in this profile was accurate at the date and time of publication.
Engine works to ensure that policymakers look for insight from the startup ecosystem when they are considering programs and legislation that affect entrepreneurs. Together, our voice is louder and more effective. Many of our lawmakers do not have first-hand experience with the country's thriving startup ecosystem, so it’s our job to amplify that perspective. To nominate a person, company, or organization to be featured in our #StartupsEverywhere series, email ian@engine.is.
