2021-12-09
Embedded Finance Marketplaces: How Companies Can Add Financial Products to Their Business
There’s been no shortage of buzzwords to describe the evolving financial services landscape. As traditional banks and lenders become increasingly digital, coupled with the emergence of fintechs and other challengers in the space, the competition and creativity involved in acquiring new customers continues to intensify.
For personal finance, that’s meant targeting consumers outside of conventional channels, while optimizing both their user experience and financial outcome. What has resulted is an industry embracing practices once shunned as interloping — banks supplying account info to fintechs (open banking), fintechs integrating traditional banking services onto their platforms (banking as a service), and so on.
However, the expanding reach of personal finance goes beyond incumbents commingling with newcomers. It has become imperative for financial service providers to extend that reach beyond the boundaries of the space, through the use of embedded finance.
What is Embedded Finance?
In simple terms, embedded finance involves integrating financial services into the digital platforms of companies looking to add financial products to their business, whether it be a website or mobile app. The type of companies that utilize embedded finance can range from retailers, to car manufacturers, to insurtechs, to credit score companies, to lifestyle publications — as long as they see value in adding financial services to their brand.
Some of the most familiar examples of embedded finance are apps like Seamless and Uber, which allow users to access payment services within the same interface. The process streamlines the user experience, with no need for a third-party host. However, embedded finance is now growing rapidly beyond payments and into broader financial services like lending, credit cards, savings, and even insurance.
The benefits are aligned for all parties involved: financial institutions can tie their products to popular brands and increase conversions, the companies embedding the services can monetize from a new revenue stream, and consumers gain wider access to different products, and at opportune times. For example, a consumer on a travel website may be incentivized by a native placement for a miles-earning credit card.
While embedded finance helps companies help consumers, there are major challenges that exist. It’s not as simple as integrating a product onto your website or app, as there are several hurdles to consider in making the venture a worthwhile addition to your business. These can include:
- Managing multiple financial providers: Hundreds of potential relationships with varying tech capabilities and disparate strategic objectives
- Personalizing the experience for users: Millions of data points to consider, as well as varying consumer profiles and expectations
- Handling of Personal Identifiable Information (PII): Establishing consent and record retention, security protocols (e.g., Know Your Customer)
- Compliance and licensing requirements: Adhering to regulatory laws across all 50 states, varying rules per state and financial service
As you can see, there is a high degree of complexity with regard to partnerships, tech, security, and compliance. If a company only partners with one financial provider to integrate their services, with no added layer of personalization, what does that really offer the consumer? Is it enough of a differentiator?
Embedded Finance Marketplaces by Even
The Even solution to this in-demand industry model is our Embedded Finance Marketplaces. Through our turnkey offerings, any business can add a financial marketplace to their site or app that is fully compliant, configurable, and driven by impactful data. Instead of incorporating just one financial services provider or product, access to our network allows businesses to integrate a full suite of financial product offers from the largest network of connected top providers.
With Even’s Embedded Finance Marketplaces, companies can customize a user experience with personalized financial product offers backed by data-enriched machine learning, allowing consumers to get matched with products that address their needs at the right time. Furthermore, Even shoulders the burden of infrastructure, security, and compliance through a seamless open API, which can accommodate any business’s software stack.
As a result, a company that does not offer financial services can do so without having to create any new products or upend their current business model. For example, if someone reading an article on a news site about “consolidating their debt” notices a native marketplace for personal loans on the web page, they can enter some PII and get pre-approved or prequalified offers with rates and terms suited to their needs and creditworthiness.
Embedded finance, however, isn’t just limited to companies that don’t offer financial products. In the case of MoneyLion, an Even partner, integrating an Embedded Finance Marketplace has allowed the mobile banking app to add cross-selling opportunities to its customers, via offers for financial services not available in MoneyLion’s current suite of products.
Companies integrating our Embedded Finance Marketplaces are able to monetize through different cost structures in addition to enhancing consumer engagement, retention, and lifetime value (LTV), by adding a new layer to their offering in financial services. For financial services providers, they are able to source new leads in a more efficient manner by maximizing better customer conversions and lowering delinquencies, which also leads to increased LTV.
All in all, the world of embedded finance will continue to grow. By getting ahead of the curve, Even has established a model that helps all parties involved: the companies embedding the tech, financial institutions, and consumers.
Disclaimer: The material provided on this site is not intended to provide legal, investment, or financial advice or to indicate the suitability of any Engine by MoneyLion product or service to your unique circumstances. For specific advice about your unique circumstances, you may wish to consult a qualified professional. Any information or statistical data sourced by Engine by MoneyLion through hyperlinks, from third-party websites, are provided for informational purposes only. While Engine by MoneyLion finds these sources to be accurate, it does not endorse or guarantee any third-party content.
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MoneyLion
MoneyLion Wins “Best Financial Literacy Tool” and “Best API” at Benzinga’s 2022 Global Fintech Awards
MoneyLion’s consumer and enterprise businesses were recognized as winners of Benzinga’s 2022 Global Fintech Awards at this year’s Fintech Deal Day
New York, December 14, 2022-- MoneyLion Inc. (“MoneyLion”) (NYSE: ML), the go-to destination for personalized financial content, products and advice, is proud to announce that it has been named “Best Financial Literacy Tool” at Benzinga’s 2022 Global Fintech Awards. MoneyLion’s enterprise business, Even Financial, was also named as the winner for “Best API.”
MoneyLion and Even Financial were honored alongside other top Fintechs, banks, research companies and more. MoneyLion’s consumer business continues to push financial literacy through innovative and personalized content. With the MoneyLion app, users can view personalized financial content in short-form video format and receive personalized financial product recommendations such as loans, insurance and investing. As MoneyLion’s enterprise offering, Even Financial digitally connects and matches consumers with real-time personalized product recommendations from banks, insurance carriers, and Fintech companies on mobile apps, websites and other digital touchpoints through its financial product search engine and Embedded Finance Marketplace technology. This technology powers both the MoneyLion Marketplace, in the MoneyLion app, as well as more than 1,000 enterprise partners.
“We’re thrilled MoneyLion’s consumer and enterprise businesses were recognized by Benzinga,” said Dee Choubey, Co-Founder and CEO of MoneyLion. “Both awards showcase MoneyLion’s every time you money approach to helping our customers. The financial literacy gap is a huge problem for millions of Americans and we remain committed to reducing its effects through engaging, informative content and key partnerships designed to bring an elevated educational experience to all.”
These awards follow the October announcement of MoneyLion University, where MoneyLion launched its latest initiative aimed at closing the gap in money and financial education across the United States.
“We could not be more pleased with Benzinga’s recognition of our company’s API technology,” stated Phill Rosen, CEO and Founder of Even Financial. “Our technology natively integrates real-time credit decisions and product recommendations from the industry’s largest network of connected financial services providers, offering access and choice to consumers searching for financial products. Our elegant Embedded Finance Marketplace, API and search engine enable any company to add trusted, personalized financial products and services to their business, reaching people when and where they need it.”
Even Financial has been named a listmaker for the Benzinga Global Fintech Awards for the last two years and was a previous award winner. In 2021, Even was selected as a listmaker for Best API and, in 2020, selected as a listmaker for both Best API and Best API Platform. In 2019, Even was awarded the Benzinga Rocky Award.
The annual Benzinga Global Fintech Awards take pride in recognizing and honoring the companies and individuals who are propelling the Fintech and financial services industry forward with the most impressive technology advancements and innovations. A panel of industry experts from a wide range of companies reviewed and judged the nominations. Winners were announced at Benzinga’s Fintech Deal Day on December 8, 2022, where MoneyLion’s Chief Customer Officer Cynthia Kleinbaum spoke on the panel, Expert Growth Hacks For Reaching Underserved Markets.
About MoneyLion MoneyLion is the go-to destination for personalized financial content, products and advice. MoneyLion’s mission is to rewire the financial system to positively change the path of every hard-working American. MoneyLion uses its proprietary data advantage and technology to empower its customers. MoneyLion engages and educates its customers with daily, hyper-personalized money-related and money-adjacent content that is delivered through each customer’s own content feed. MoneyLion provides its customers a full suite of financial and non-financial solutions, bundling its proprietary, low-cost financial products with products that are offered through its marketplace technology and network affiliate partners. MoneyLion also leverages its distinct data, technology, and network advantages to deliver leading embedded finance and marketplace solutions for enterprise customers. Since its founding in 2013, MoneyLion has empowered millions of Americans to take control of their finances and live their best financial life, every day.
For more information about the company, visit https://www.moneylion.com/ and https://www.evenfinancial.com. For investor information and updates, visit investors.moneylion.com and follow @MoneyLionIR on Twitter.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221214006032/en/
MoneyLion Communications [email protected]
Caliber Corporate Advisers [email protected]
Even Financial [email protected]
Built In
Even Named A Built In “2023 Best Places to Work”
New York, Jan. 11, 2023 -- Even Financial ("Even"), an independent subsidiary of MoneyLion Inc. (NYSE: ML), and a leading embedded finance marketplace platform, is proud to announce that it was honored in Built In’s “2023 Best Places To Work” Awards. Specifically, Even earned a place on the Hybrid Best Places to Work in New York.
The Best Places to Work Awards, now in its fifth year, honors companies across numerous categories, sizes, remote-first employers as well as in person and hybrid working companies across the U.S.
Built In determines the winners of Best Places to Work based on an algorithm, using company data about compensation and benefits, and also weighs criteria like remote and flexible work opportunities, as well as other people-first cultural offerings.
This announcement follows Even’s recent win at the Benzinga Global Fintech Awards for “Best API.”
About Even Financial
Even is the industry-leading embedded financial marketplace and independent subsidiary of MoneyLion Inc. (“MoneyLion”) (NYSE: ML). MoneyLion is a leading digital financial services and lifestyle content platform serving both consumer and enterprise customers. As part of MoneyLion’s enterprise offering, Even digitally connects and matches consumers with real-time, personalized financial product recommendations from banks, insurance carriers, and fintech companies on mobile apps, websites, and other digital touchpoints through its marketplace technology. Even's infrastructure leverages machine learning and advanced data science to solve a significant pain point in financial services customer acquisition, seamlessly bridging financial services providers (such as SoFi) and channel partners (such as TransUnion) via its industry-leading API and embedded finance marketplaces. Even enables any company to add financial products to its business, with full compliance and security at scale. Even was named one of "America's Best Startup Employers'' by Forbes for 2022 and was named to the 2021 Deloitte Technology Fast 500, which recognizes the fastest growing tech companies in the world. Learn more at www.evenfinancial.com and investors.moneylion.com.