Texan digital challenger Fair set to launch in Spring
Fair, a digital challenger based out of Texas, is set to launch in the Spring with a full armoury of banking services.
Its website says features will include a 2% annual dividend for savings, international transfers, interest-free microloans, equity-based lending, investing, retirement packages, and debit cards for kids.
The start-up’s founder and CEO, Khalid Parekh, also heads up Houston-based AMSYS group. The firm, begun in 2003, is collection of small companies. They cover gallery signage, IT services, healthcare, capital investment, blockchain and construction.
AMSYS employs some 350 people according to a spokesperson, as well as relying on an external “network”.
Parekh, who immigrated to the US from India some 20 years ago, claims Fair will remain an “ethical” banking alternative – planning to donate 2.5% of profits to refugee charities.
A $200m valuation?
According to a statement issued by the digital banking provider’s PR, the challenger has raised $20 million “in just 40 days”. No identities of investors in the round were disclosed.
This month, the start-up opened its waiting list, which boasts 50,000 customers in the wings already. As for a valuation, the start-up already claims Fair’s value sits at $200 million. It’s unclear what makes up this figure. It could be pulling on reserves in AMSYS, which seems to act as Fair’s parent – according to its website.
Washington-based Coastal Community Bank will serve as Fair’s FDIC-insured bank partner. This means Fair can insure deposits up to $250,000.
Investment and retirement services will operate through its Fair Invest product. Whilst lending services will operate through a separate Fair Lending offering.
For its kid-friendly banking feature, only children over 13 can be authorised by the parent’s account. When it comes to the firm’s annual 2% dividend, users will have to maintain a minimum average monthly balance of $500 to qualify for it.