Community

Founded by Mexican co-founders who themselves navigated the banking system as immigrants in the United States, Común brings a unique perspective to the challenges faced by its target audience.

Let’s look at how Común remains profitable through innovative revenue streams, cost-saving strategies, and a deep commitment to its customers, emphasizing how these factors contribute to the ease and benefits of virtual banking for newcomers to the financial world.

Revenue Streams: Banking Services

Común not only offers essential banking services¹, but also features such as international remittances⁴, which provide significant benefits for Común customers. Común monitors cash flows and payment channels to ensure efficient and secure transactions. Consumers often pay high remittance fees with other services, but Común offers a cost-effective alternative.

This service is crucial for immigrants who regularly send money home, increasing Común’s appeal as a banking solution that understands and responds to the specific financial dynamics of its users.

Cost-Saving Strategies: Financial Inclusion

The strategic absence of physical branches allows Común to minimize operating costs and maximize profits. Común allocates resources to expand its reach and improve financial services for Latina immigrant families. These savings are passed on to customers through lower fees and better rates, making financial services more accessible. Común’s digital platform makes banking easier to access, offering 24/7 services that make money management secure and efficient from any browser or app.

Company Values and Customer Relationship

Común champions financial inclusion, particularly within the Latino community, positioning itself among companies dedicated to serving Latino communities and enabling account setup with a variety of international IDs. This inclusivity strengthens trust and understanding between Común and its customers, fostering a supportive banking environment.

Competitive Advantage

By creating a customer-focused digital bank that offers services in Spanish and accepts nontraditional IDs, Común specifically addresses the barriers faced by Latino immigrants. This personalized service not only sets Común apart from its competitors, but also deepens customer loyalty and trust.

Target Audience

Común focuses on Latino immigrants, a group often overlooked by traditional banks. In its latest funding round, Común raised $5 million in June 2022 to further develop its services. By offering accessible and empathetic financial services, Común not only meets a significant market need, but also empowers its customers toward greater financial stability and integration into the U.S. economy. South Park Commons, along with Costanoa Ventures, has played a key role in supporting financial inclusion banking solutions for Latina immigrant families in the United States.

Conclusion

Virtual banks like Común present an easy-to-use, cost-effective, and inclusive alternative to traditional banking, particularly beneficial for those who are new to banking or marginalized by conventional financial institutions. By focusing on accessibility, cost efficiency, and customer-oriented services, Común not only maintains profitability, but also significantly improves the banking experience for its users.

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The Importance of Investing for Immigrant Families

Investing is one of the most powerful tools for building long-term wealth. For immigrant families in the U.S., understanding investment basics can make the difference between merely surviving and financially thriving. In this guide, we explain the fundamental concepts you need to know before you start investing.

What is investing?

Investing means putting money into assets with the goal of growing it over time. Unlike saving, which keeps money safe but with low returns, investing takes on some risk in exchange for the possibility of higher gains. The most common assets are stocks (ownership stakes in companies), bonds (loans to governments or companies), mutual funds (diversified portfolios), and real estate.

Key concepts you need to understand

Risk and return

The higher the potential risk, the higher the return can be. Individual stocks are more volatile than government bonds. Index funds offer a balance between reduced risk through diversification and historically positive long-term returns.

Diversification

Do not put all your eggs in one basket. Spreading investments across multiple assets, sectors, and geographies reduces the risk that one bad investment will ruin your entire portfolio.

Compound interest

Compound interest is the phenomenon of earning interest on previously earned interest. An investor who starts at age 25 will reach retirement with significantly more money than someone who starts at 35, even if they contribute the same monthly amount.

Investment horizon

The length of time you plan to hold your investments affects which assets to choose. For goals more than 5 years away, you can take on more risk. For short-term goals, prefer more conservative options. Never invest money you need in the short term.

Frequently asked questions about investing for immigrants in the U.S.

Can an immigrant invest in the U.S. stock market?

Yes. Most brokers in the U.S. allow non-citizens to invest, including permanent residents and people with work visas (H-1B, L-1, etc.). Some brokers also accept non-residents. To open an investment account, you generally need a tax identification number (SSN or ITIN) and a U.S. bank account.

How much money can I start investing with in the U.S.?

Most modern brokers like Fidelity, Charles Schwab, and Robinhood have no minimum amount to open an account. You can buy fractional shares starting at $1. What matters is not the starting amount but consistency—in­vesting $50-100 per month regularly produces better results than irregular large sums thanks to dollar-cost averaging (DCA).

What is an index fund and why is it recommended for beginners?

An index fund is a fund that tracks the performance of a stock market index such as the S&P 500. Instead of selecting individual stocks, you invest in a “basket” of the 500 largest companies in the U.S. They are popular for their low cost (fees of 0.03-0.20%), automatic diversification, and historical returns that have outperformed most active managers over the long term.

What happens to my investments if I move back to my country?

You can usually keep your U.S. investment account while abroad, although some brokers restrict nonresident accounts. When you sell, you will pay capital gains taxes in the U.S. (and possibly in your country of residence). Consult a tax advisor before leaving the country to plan the transition properly.

Is a 401(k) account the same as a regular investment account?

No. A 401(k) is a tax-advantaged retirement account generally offered by your employer—the contributions reduce your taxable income now, and the money grows tax-deferred until retirement. A regular investment account (brokerage account) does not have special tax advantages but also no withdrawal restrictions. Both are complementary tools for building wealth.

What are the most common mistakes beginner investors make?

The most common mistakes are: investing money you need in the short term (investments require a 3+ year horizon), selling when the market drops out of panic, not diversifying (putting everything in one company or sector), paying unnecessarily high fees, and not investing because you are “waiting for the perfect moment.” Discipline and consistency matter more than perfect market timing.

Starting today, all Común customers will have access to free international money transfers for a limited time. Afterward, the fee will start at $2.99.

Sending international money transfers, also known as remittances, can be costly given the additional fees consumers face from financial institutions and other non-bank service providers. This is a particularly relevant area for the Latino community. According to a recent report from the Inter-American Development Bank, remittances to Latin America and the Caribbean reached a record high in 2023, reaching $155 billion, a 9.5% increase compared with 2022 ($142 billion). At Común, we believe remittance sending should not come at a high cost. Today, we are pleased to announce that all Común customers can send money to Latin America at no cost for a limited time. Afterward, the fee will start at $2.99, lower than what other providers offer.

To put into perspective how much Latinos can save in fees with international money transfers, Común analyzed and compared the cost of using providers such as Western Union or Remitly versus Común. In addition, we wanted to know how customers interact with Común’s new money transfer feature, which became available in March 2024.

For the analysis, we first examined the average number of remittance transfers Común customers send monthly; in this case, it was two transfers. Using Común customer insights, the report analyzed the most common countries to which customers send money. Finally, we examined how much a consumer could save in remittance fees over a one-year and five-year period if they used Común versus Western Union or Remitly, assuming they sent two money transfers each month.

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Key Findings

• Money transfer destinations for Común customers: Común customers were most likely to send remittances to Mexico, followed by Honduras, Guatemala, Colombia, and Nicaragua.
• Paying in person to send money internationally can cost hundreds of dollars: According to our analysis, assuming a person sends two remittances per month and pays in person (for example, by visiting a Western Union location), fees can total $960. By using a service like Común, users can save nearly $600 in fees over five years. In addition, Común customers have the convenience of sending remittances directly from their phones.
• Even if users can avoid paying in person and want to send remittances from a bank account, sending money abroad is still costly: Our analysis found that for users who want to send remittances directly from a U.S. bank account, using a service like Común instead of Western Union and Remitly can save consumers more than $20 in one year and $120 in five years.

To learn more about Común and its latest remittance offer along with a bank account and debit card in the U.S., click here. 

Methodology

Our analysis included several data points such as:

1. To determine the most common countries to which Común customers send money and the average number of transfers each month, we examined customer usage between March 7, 2024, and April 15, 2024.
2. To understand how much customers may end up paying to send international money transfers, we analyzed Western Union and Remitly fees. Our analysis examined how much an individual pays in remittance fees if 1) they pay in person, meaning they go into a Western Union location to send a transfer, and 2) they send money through their bank account, and the recipient picks up cash at the destination.

A service provided by Service UniTeller, Inc. Service UniTeller, Inc. is licensed in all states that require a license.

¹Delivery times may vary.

²Terms and conditions here. Terms and Conditions apply. Limited-time offer. Service UniTeller, Inc. is licensed in all states that require a license. Común, Inc. and/or Service UniTeller, Inc. may earn revenue from foreign currency conversion. Fees are subject to change. Service UniTeller, Inc. and/or Común, Inc. reserve the right, at any time, without notice, to add, modify, or cancel any and/or all terms of the promotion, or replace, in whole or in part, the promotion with another offer without any liability to Service UniTeller, Inc. and/or Común, Inc.

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Común does not have branches, but it has a team that supports its customers 24 hours a day, 7 days a week, from the comfort of their homes, in three different languages.

Building a better future for immigrants in the U.S. is a core principle of Común’s mission. Accessible and easy-to-understand banking options are a key part of the immigrant journey. However, the options are scarce.

Complex, cumbersome, and expensive options are the norm. Activities that may seem trivial and intuitive to those born in the U.S. are overwhelming and confusing for a newly arrived immigrant. Everything from setting up direct deposit with an employer to sending money home, making payments for goods and services, or understanding how to build a credit score seems too complex for anyone who has never had to do this in the U.S., let alone at all.

Hidden fees and costly charges add another layer of stress when starting a financial life in the U.S. Between minimum account balances, monthly fees, overdraft charges, large check deposit fees, extortionate international transfer fees, and everything else, maintaining and using a bank account in the U.S. can be expensive. For manual laborers, this can represent a significant percentage of their wages.

The physical locations of traditional banks can also be scarce in some areas. Since opening a bank account or depositing a check or cash into the account must be done at a branch, this is a significant burden for someone living in a remote area. Many immigrants, sometimes working on remote farms or factories, live miles away from the nearest bank branch. Transportation costs to those branches add to the already high fees of using and maintaining an account.

Even if the banking services provided were more intuitive, digital, and lower cost, another major barrier remains. Obtaining the necessary documentation to open a bank account can also make access to fair and simple financial services difficult. Immigrants fortunate enough to have work authorization still need to gather important documentation that is not always available to them. For those who have come to the U.S. seeking asylum or better work opportunities through a more unconventional path, the documents required to open an account are often prohibitive.

Building a 100% digital banking platform to solve the issues mentioned above is part of what Común seeks to achieve because we believe in helping unlock social mobility. But a digital, low-cost, and intuitive platform is not enough. To navigate this process, immigrants need help, and help is best found in a Community that understands them when they need it most.

That is why not only our customers are part of our Community, but also the people who help them 24 hours a day, 7 days a week through our app, social media, WhatsApp, or by phone. Beyond solving an immediate problem, the support provided goes further. It teaches and educates, empathizes, and strives to foster a sense of Community among people who understand them, in terms they comprehend and in the language they speak. This is the core of true digital community banking. Our team helps them set up direct deposit, connect to Zelle, get refunds for charges they disagree with, and everything else.

At Común, the first step in this journey has already begun. Our team in Mérida, Mexico, is part of our Community and the one we seek to serve. They are an extension of our mission and our digital platform, and a necessary ingredient in unlocking social mobility for millions of immigrants in the U.S.

As the reasons for transferring money internationally increase, so do the available methods. Whether you are sending remittances to your family, paying suppliers, or receiving payments from abroad, understanding how international transfers work will help you save time and money.

What is an international money transfer?

An international money transfer is the movement of funds from a bank account in one country to another account in a different country. It can be done through bank wire transfers, specialized remittance services (Western Union, Remitly, Wise), or platforms like Común that allow you to send money to Mexico directly from the app.

How to choose the best international transfer service?

To choose the best service, consider: the total cost (visible fee + exchange rate margin), delivery speed, available delivery methods (bank deposit, cash pickup), and whether they accept your documentation. Use comparison tools like Monito to see real-time options for your specific corridor.

Main options for sending money internationally from the U.S.

Bank wire transfer

Traditional, expensive method ($25-45 per transfer), takes 1-5 business days, requires the recipient’s full bank details: account number, SWIFT/BIC, IBAN, or CLABE (Mexico).

Specialized remittance services

Wise, Remitly, and Xoom offer fees lower than 3-5%, delivery from minutes to 3 days, and multiple delivery options. Wise uses the real market exchange rate. They require an SSN or ITIN in the U.S.

Común

Común allows you to send remittances to Mexico and Latin America starting at $2.99 without requiring an SSN. Ideal for newly arrived immigrants. Options for bank deposit, cash pickup at Oxxo or Walmart.

Frequently asked questions about international transfers

What is the cheapest way to make an international transfer?

Specialized remittance apps (Wise, Remitly, Xoom) are generally cheaper than traditional banks for international transfers. Wise is known for using the real market exchange rate with transparent fees. For specific destinations such as Mexico, platforms like Común offer transfers starting at $2.99. Use comparison tools like Monito to see the best real-time options for your specific corridor.

How long does an international transfer take?

It depends on the method and destination country. International bank wire transfers take 1-5 business days. Remittance apps can be almost instant for cash pickup, or 1-3 business days for bank deposit. Factors such as time zones, bank cutoff times, and the destination country’s compliance requirements affect arrival time.

What information do I need to make an international transfer?

For an international bank wire transfer, you need: the beneficiary’s full name, the receiving bank’s name and address, the receiving bank’s SWIFT/BIC code, and the beneficiary’s account number or IBAN. For Mexico, the interbank CLABE (18 digits) is used. For remittance apps like Común, sometimes the recipient’s phone number or bank name is enough.

Are there amount limits for international transfers?

Yes. Limits vary by service and user verification level. Remittance apps typically allow between $2,999 and $10,000 per day for verified users. Bank wire transfers can be larger but cost more ($25-45 per transaction). Anti-money-laundering regulations require reporting transfers over $10,000 to the IRS (CTR form).

Do I need an SSN to send money abroad from the U.S.?

It depends on the service. Wise, Remitly, and traditional banks require an SSN or ITIN for regulatory compliance. Platforms like Común do not require an SSN — they accept a passport or consular ID — and allow you to send remittances to Mexico and Latin America starting at $2.99. This is especially useful for newly arrived immigrants who do not yet have an SSN.

Are international transfers taxable?

Sending money abroad itself does not generate taxes in the U.S. However, if the money comes from undeclared income, that is the tax obligation to address. The IRS may require reporting foreign accounts (FBAR/FATCA) if you have more than $10,000 in foreign accounts at any point during the year.

The ability to transfer money efficiently and securely is a cornerstone of economic interactions. This article explores the range of electronic transfer methods available today, comparing and contrasting wire transfers, Automated Clearing House (ACH) transfers, and other prevalent money-transfer mechanisms. By understanding the nuances of each international transfer method, from international money transfers to peer-to-peer platforms, individuals and businesses can navigate the complexities of financial transactions with confidence.

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Wire Transfers: Speed and International Reach

Wire transfers stand out as a testament to the enduring value of fast, secure international money movement. Valued for their reliability, wire transfers allow individuals and businesses to transfer funds directly between bank accounts across the globe. The defining feature of wire transfers is their rapid processing, crucial for time-sensitive transactions. They leverage the vast international network of a financial institution, making it possible to send money to almost any country.

However, the efficiency and security of wire transfers come at a cost. They are generally associated with higher fees compared with other transfer methods, both for the sender and, occasionally, the recipient. These transactions also require the provision of precise and complete recipient bank details, including the bank name, account number, and routing numbers, ensuring that funds reach the intended destination without delays.

Despite the cost, the unmatched speed and security of wire transfers make them the preferred choice for large international transactions, where the assurance of timely and safe delivery outweighs the expense. Whether for business dealings, purchasing property abroad, or sending emergency funds, wire transfers offer a reliable solution, backed by the reputation and regulatory framework of traditional financial institutions.

ACH Transfers: Domestic Efficiency and Low Cost

The Automated Clearing House (ACH) network offers an efficient and economical alternative for domestic money transfers. ACH transfers encompass both direct deposits and direct payments, including payroll, government benefits, and bill payments. Unlike wire transfers, ACH transfers are processed in batches, which can lead to slower delivery speed, typically a few business days. However, the lower fees associated with ACH transfers make them an attractive option for routine domestic transactions. ACH transfers and wire transfers, while often mentioned together, serve distinct needs based on the urgency and geographic scope of the transaction.

The versatility of the ACH network extends beyond simple cost savings, providing a framework for a wide range of transactions beyond conventional check deposits and bill payments. This includes, but is not limited to, person-to-person (P2P) payments, business-to-business transactions, and even government-to-citizen payments such as tax refunds.

In addition, the arrival of same-day ACH processing marks a significant improvement in transaction speed, addressing one of the few drawbacks traditionally associated with remittance transfers through this method. Despite this advancement, the inherent delay in batch processing still makes ACH transfers less suitable for urgent transactions, positioning them as a preferred method for planned recurring payments where cost efficiency outweighs immediate fund availability.

The Rise of Digital Convenience:

Two methods stand out for their distinct approaches and unique benefits: person-to-person (P2P) transfers and traditional transactions at both banks and credit unions, and banks. P2P platforms like PayPal, Venmo, Cash App, and Google Pay have revolutionized the way we think about money transfers, offering a level of convenience and accessibility that aligns with the demands of the digital age. These platforms cater to a generation that values speed, simplicity, and the ability to transact on the go using only a smartphone. On the other hand, credit unions and banks represent the backbone of traditional financial transactions, providing a full suite of services ranging from everyday banking needs to complex international wire transfers.

Person-to-Person Transfers

As mentioned, platforms like PayPal, Venmo, Cash App, and Google Pay have become indispensable in the digital era, democratizing the process of sending and receiving money. These apps excel in user convenience, enabling transactions with just a smartphone. Linked to one’s bank account or debit card, they facilitate both domestic and, increasingly, international transfers.

While often free for basic services, they may charge small fees for instant transfers or currency exchange-rate conversion. The appeal of P2P platforms lies in their simplicity and the ability to transfer funds without needing the recipient’s banking details, only their phone number or email address.

Credit Unions and Banks: Traditional but Reliable

Credit unions and banks remain the backbone of the money-transfer ecosystem. Offering a range of services from direct deposits to international wire transfers, these institutions provide a secure, if sometimes more expensive, way to move funds. The choice between a bank and a credit union often comes down to the nature of the transaction—credit unions may offer lower fees and better exchange rates for their members, while banks might provide more comprehensive services for international and business transfers. Regardless of the choice, ensuring the transaction is completed with a reputable institution is paramount.

Deciding Between Money-Transfer Apps: Key Considerations

When comparing money transfer apps, several key factors should be considered to ensure the decision aligns with your personal or business financial needs. Here are the essential aspects to evaluate:

• Fees: Compare the associated costs for sending or receiving money, including fees for instant transfers or foreign-currency conversion charges.
• Transfer Limits: Check the maximum and minimum amounts you can send, as platforms vary widely in their limits.
• Geographic Availability: Not all apps are available in every country or support international transfers. Make sure the app meets your geographic requirements.
• Security: Investigate the security measures in place, such as encryption and fraud protection, to safeguard your financial information.
• User Experience: Consider the app’s ease of use, customer support availability, and any additional features such as bill splitting or social functionality.
• Delivery Speed: While some apps offer instant transfers, others may take a few business days. Choose based on how quickly you need the funds to be available.
• Exchange Rates and Currency Options: For international transfers, evaluate the exchange rates offered and which currencies are supported.

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By carefully considering these factors, users can select a money transfer app that best suits their financial transactions, balancing convenience, cost, and security. Whether sending money to a friend domestically or managing international business transactions, the right money transfer app can make all the difference in achieving a smooth and efficient money-transfer experience.

Emerging Technologies and Financial Innovations

The financial sector continues to evolve, with emerging technologies and innovations offering new ways to transfer money. Blockchain technology, for example, has given rise to cryptocurrencies, which promise faster international transfers without the need for traditional banking infrastructure. However, these methods come with their own set of challenges, including volatility and regulatory uncertainty. As these technologies develop, they may offer viable alternatives to traditional and electronic fund-transfer methods. Some developments include:

1. Decentralized Finance (DeFi) Platforms: These platforms are reshaping financial transactions by enabling peer-to-peer lending, borrowing, and investing without traditional intermediaries, using blockchain technology to ensure security and transparency.
2. Smart Contracts: These self-executing contracts with the terms of the agreement directly written into code can automate and secure the execution of financial transactions, reducing the need for intermediaries and increasing efficiency and trust.
3. Digital Wallet and Mobile Payment Integration: Integrating digital wallets with mobile payment systems is streamlining the process of making transactions, making them more seamless and accessible, and is poised to reduce reliance on physical bank cards and cash even further.

Conclusion

‍The world of money-transfer methods is diverse, each with its own set of advantages, disadvantages, and best-use scenarios. From the rapid international reach of wire transfers to the domestic efficiency of ACH transactions and the convenience of money transfer apps, the choice of method depends on the specific needs of the transaction, including speed, cost, and geographic reach. As financial technologies continue to evolve, staying informed about these methods will enable individuals and businesses to make the best decisions for their money-transfer needs, ensuring that funds are transferred securely, efficiently, and cost-effectively.