Nina Mohanty, founder of Bloom Money.
Bloom Money
**Millennial entrepreneur Nina Mohanty** has made waves in the financial technology arena by raising **$2 million** for her innovative app, **Bloom Money**. This app is not just another financial tool; it’s a **game-changer** tailored specifically for **immigrant communities in the West**, helping them to save collaboratively and build wealth together.
Founded in 2023, **Bloom Money** recognizes a significant gap in what mainstream banks offer and how immigrant communities manage their finances. Mohanty, who has spent the last decade in the U.K. and has experience at major banks like **Klarna** and **Mastercard**, is on a mission to bridge this divide.
“I became increasingly frustrated seeing the same products being marketed to the same audience while the unique needs of immigrant communities were largely ignored,” Mohanty stated in an interview with CNBC Make It.
**Rethinking Savings: The Immigrant Way**
For many immigrants, saving money is not just a matter of financial desire but a **cultural practice**. Unlike traditional high-interest savings accounts, these communities often prefer to pool resources through **informal arrangements** known as **money circles** or **rotating savings and credit associations (ROSCA)**.
“I would engage with bus drivers during their breaks or local aunties and discover how they managed their finances through communal pooling of funds,” Mohanty elaborated.
In a money circle, for instance, three friends might collectively save $300 by each contributing $100 a month. Each participant takes turns accessing the total amount, creating a cycle of support where resources are utilized for significant expenses like **plane tickets home**, children’s necessities, or even **business investments**.
Such systems have various cultural names: **“chit funds”** in India, **“pardner”** in Jamaica, **“kameti”** in Pakistan, and **“esusu”** in Nigeria. This collaborative spirit stands as a testament to how these communities navigate financial landscapes, particularly when mainstream banking systems often treat them unfairly.
According to a 2023 report by Fair4All Finance, approximately **20% of individuals** from minority ethnic groups reported experiencing racial discrimination when dealing with financial institutions.
**The Wishful Stigma: “This Looks Like Money Laundering”**
While rotating savings are a staple in immigrant communities, Mohanty underscores the **risks** involved. The informal nature of these systems can lead to **regulatory challenges**, especially when cash is exchanged.
“There’s an undeniable gap that technology can fill,” Mohanty mentioned, as she introduces **Bloom Money**—a platform specifically designed for U.K.-based immigrant communities. “We’re creating digital spaces for individuals who often manage two households at once,” she added.
Unfortunately, Western banks often misinterpret these communal practices as suspicious. As Mohanty recalls from her time at **Monzo**, her former employer flagged these arrangements as potential **money laundering**, frequently shutting down accounts without understanding the cultural context. “Our approach aims to correct that misconception,” she emphasized.
**Establishing Generational Wealth**
Bloom Money’s ambitions extend beyond merely digitizing this age-old practice. **Mohanty** envisions a future where immigrants can not only save but **invest** responsibly for future generations.
“Many immigrants focus so much on sending money home that they often neglect their own financial future,” she observed. “Imagine if our parents had invested or saved in pension funds; we want to ensure that the next generation doesn’t miss out on those opportunities,” she stated.
Reports indicate that ethnic minorities in the U.K. are **less likely to have** savings accounts or workplace pensions compared to their white counterparts, making initiatives like Bloom Money crucial for financial empowerment.
Bloom Money is actively working to enhance users’ credit profiles, enabling them to access loans for investments in both **pension pots** and other wealth-building instruments. “We aim to make it as simple as pressing a button: ‘You’ve received your payout. Why not invest in your future?’,” Mohanty concluded.
