The startup, which had already been offering unsecured loans to newcomers to the U.S., is working with technology and banking partners to offer them deposit accounts and debit cards.
Ludwig, a former regulator and CEO of Promontory Financial, and Mahan, the head of Live Oak Bancshares, say they want to back tech startups that support community banks. The ABA and ICBA are among the fund's investors.
Teslar Software, which supplies community banks with a platform to manage data from different internal systems, received $2 million from the Independent Community Bankers of America.
Aura is one of the few fintechs in the nation to have a Community Development Financial Institution designation from the U.S. Department of the Treasury.
The investments that Rana Yared's team makes in startups help Goldman Sachs in two ways: Besides earning a profit, the company also uses a lot of the technology the startups develop as part of its internal digital transformation.
Some lenders, especially in markets like California, are preparing in case of a technology-industry stumble that hurts business, real estate and other loan segments. Whether those fears are well founded is a matter of debate.
