The partnership opens up a digital disbursement platform to reach unbanked and underbanked individuals.

BNY Mellon (NYSE: BK) and MoCaFi, a Black-founded fintech platform, have formed a strategic alliance to bring digital payment options to unbanked and underbanked communities in the U.S. BNY Mellon’s Treasury Services business will provide federal, state, and local governments, as well as corporate clients, with a digital disbursement payment service through MoCaFi’s offering.

This initiative aligns with BNY Mellon’s commitment to financial inclusion, aiming to connect individuals and communities without access to basic financial services to high-quality financial services. According to the Federal Deposit Insurance Corporation, approximately 5.9 million U.S. households (4.5 percent) were unbanked in 2021, and around 18.7 million households (14.1 percent) were underbanked. (BNY Mellon)

The new disbursement service, available via BNY Mellon’s Vaia platform, allows governments and corporate clients to distribute payments and disbursements, such as disaster relief aid and employee payroll, to individuals without financial services access. Additionally, unbanked and underbanked individuals will have the opportunity to receive basic banking services, including an FDIC-insured account, a debit card, and credit reporting capabilities, through the MoCaFi platform.

Jennifer Barker, CEO of Treasury Services at BNY Mellon, observed that providing digital payments to a significant portion of the U.S. economy has been a challenge for both the public and private sectors; however, this collaboration with MoCaFi will make the financial ecosystem stronger, better, and more accessible while promoting financial equity across the country.

Wole Coaxum, CEO and Founder of MoCaFi, emphasized the alliance’s role in reducing the racial and social wealth gap. By increasing access to modern banking services, the company aims to make the economy more inclusive, providing opportunities to underserved individuals, particularly communities of color.

BNY Mellon, established in 1784, is America’s oldest bank and offers comprehensive solutions for managing and servicing financial assets globally.

MoCaFi’s mission is to help excluded communities create wealth through better access to public, private, and social capital. The platform has disbursed over $100 million in financial resources to underserved communities across 15 cities and counties in the U.S.

MoCaFi has received recognition as one of Forbes’ Most Innovative Fintechs of 2021 and has been listed in FORTUNE’s Impact 20 and The Plug’s 100 Promising Black-led, High-Growth Tech Companies focusing on Social Impact.

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