How FinTech Is Improving the Lives of Immigrants

The modern world is truly global. In fact, in 2015, 244 million people were living in countries that were not their place of birth. For developed nations, which tend to intake a large percentage of migrants, these new additions to the labor market can keep the economy moving, which is why the immigrant population is an important section of the market to target.

Even though immigration has long been part of North American culture, the Big Banking system has never known how to deal with the complications of the immigration process. With no credit history, assets or federally-mandated ID in their new country, immigrants are unable to secure loans to help them plan for their future.

Once again, FinTech is ready to step in and save the day.

Amber Financial Services is one such company coming in to help immigrants settle in their new home. The CEO, Cindy Chen, was compelled to create the startup after she and her husband had to fight to get a loan in Canada, despite having assets in China. With a simple three step online application process, the application can be fully processed in just 30 minutes—good news for anyone anxious to start building their new life in an unfamiliar country. And unlike the Big Banks, Amber Financial Services accepts past bank statements from other countries as part of the loan qualification process.

The company has already raised $5 million from private investors and has processed over $25 million in loans. The aim, Chen says, is to process $100 million by the end of the year, fantastic news for the hundreds of millions of immigrants that cross our borders every year. And despite the stigma that might come with the lack of national credit, Chen says no one has defaulted on their loans.

With the changing climate and ever-increasing instability, migration will only increase and companies that provide services to this section of the population will find themselves with a very grateful and hungry customer base. The old systems, however, still hold tight to old rules and leave these new countrymen (and -women) to struggle without help. If there was any clearer sign that the Big Banks are past their prime, I don’t know what it would be. Truly the new world reality needs an updated banking system.