It's no surprise that 85% of Americans own a smartphone and use it daily, and 31% are online "constantly." These technological trends have changed the way consumers experience and interact with your business and brand. As this ease of access has changed, businesses are forced to continue to adapt in order to stay competitive and relative.
One of the nearly countless examples of financial technology's impact on the average person is the rise of embedded finance. What this means — and how your business can take advantage of these changes — has become a highly relevant and timely topic; with 84% of US companies believing adding financial services to be critical to their future success.
Embedded finance is the technology that allows any organization to embed third-party financial products into their environments. These products allow customers to enroll in services traditionally offered only by banks and other financial institutions. Specific examples of embedded financial products include:
An embedded finance marketplace allows customers or businesses to access various financial services via a third party. Specifically, such a marketplace enables customers to search for certain products, like loans, or insurance, with various optionality. Customers can search across multiple providers to find a finance product that suits their needs.
Rather than managing individual relationships with financial services providers, partnering with a marketplace provider allows businesses to outsource the necessary technology, relationship management, and infrastructure installation. Keep in mind that not all providers are created equal. While being able to add financial products to your business is important, ease of use, and a personalized consumer experience is paramount for adoption and growth.
A marketplace approach can offer customers numerous benefits directly improving their financial lives. In doing so, businesses can also expect to reap significant rewards.
One of the main benefits of digital marketplaces is that they offer customers easy access. With a few clicks on their phone or laptop, customers can quickly determine what products are available to them. and make a direct comparison about fees, rates, benefits, and more.
An embedded financial marketplace can help simplify the experience for customers. According to Mirakl’s 2020 State of Marketplace report, "57% of online customers said they shopped at marketplaces either 'a lot' or 'exclusively’,'' meaning the financial marketplace takes advantage of built-in or already preferred shopping methods. By using an embedded financial marketplace, businesses can find ways to connect with customers whose preference is to shop through marketplace methods.
Marketplaces allow companies to reach new customers inexpensively. Every business has a limited marketing budget. By participating in a marketplace, businesses can quickly get in front of all the customers that use that marketplace. This allows businesses to improve both their CAC/LTV ratios while increasing their direct consumer engagement.
Offering customers access to an embedded financial marketplace can ensure that companies expand what they offer and who they offer it to. Banks or financial service companies can't always provide everything to their customers directly. However, by using an embedded financial marketplace, they can help their customers find everything they need in a single experience. Thus, using an embedded financial marketplace creates additional value and allows businesses to provide their customers with access to more services, even if they don't provide those services themselves.
Changes in technology and increased revenue opportunities have made today the best time to take advantage of embedded financial marketplaces.
There's no question that your customers — and the businesses they deal with — are busier than ever. With your customers' time and attention pulled in a thousand different directions, the people you serve are looking for ways to simplify their financial experiences and ensure they can still access the products they need.
Data backs up this new paradigm. According to the Mirakl report referenced above , 7 in 10 customers value marketplace offerings that can simplify their purchasing experience. This statistic reflects more than just a desire for easier access to complex financial products: The same survey found that 73% of customers wished their favorite retailers participated in online marketplaces.
This trend has accelerated over time. Before the pandemic, 42% of customers did their shopping at an online marketplace. After the pandemic, that number rose to 57%.
Banks and other financial services providers that clearly understand the value of an embedded financial marketplace have noted this change in consumer patterns. In fact, 60% of banks surveyed said they were likely to form or join such a marketplace. This change represents a stark shift in the attitude of banks towards financial marketplaces. Previously, banks jealously guarded their engagement with other institutions, fearing competition and a negative impact on brand loyalty. They typically did not participate in marketplaces that allowed customers to break away from the banks they had traditionally used.
However, the increased digitization of financial services has led banks to realize that the old axiom is true: If you can't beat them, join them. Now, more financial companies than ever participate in these marketplaces.
This new reality creates an opportunity to participate in an embedded financial marketplace. Customers expect such a marketplace and have come to value it. By taking advantage of this new opportunity, your business can provide customers with a practical, valuable product. More to the point, you can substantially increase your bottom line.
Embedded financial marketplaces offer opportunities to provide valuable products, enhance brand loyalty, and serve your clients better. However, the potential profit behind embedded financial marketplaces is also extensive.
How extensive? According to a Forbes survey, the profit opportunities behind embedded financial marketplaces are massive. A survey of 1,000 non-financial companies found nearly half had already invested in embedded financial solutions. The same study found many reasons for these increased offerings, including:
According to a Plaid survey, which can be downloaded here, businesses have proven this strategy works. Of those who offer embedded financial services:
While your business cannot ignore the opportunities to enhance customer loyalty and build more customer engagement, you must also consider the revenue opportunities that come with increased reliance on financial technology. Fortunately, those revenue opportunities are ample. One study found that participating businesses can potentially increase revenue five-fold per customer by integrating financial services into their business.
Fundamentally, the opportunity for any business to expand its access to embedded finance marketplaces exists. Embedded finance marketplaces allow businesses to do more for their customers without investing in new product lines. They can enhance brand loyalty, increase customer engagement, and drive more revenue.
If your organization is interested in adding financial products to your business, we're here to help. Engine by MoneyLion allows companies to add financial products to their business through our embedded finance marketplaces and API.
Want more information? Contact Engine by MoneyLion today to learn more.
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’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.
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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.