Thanks to the technology-fueled alternative finance revolution, there are now more investment opportunities and options than ever before. Unfortunately, many millennials are not taking advantage of the chance to put their money to work for them and get a head start on their savings while time is still on their side.
A rough start
While the 1980s and 1990s ushered in unprecedented stock market returns for U.S. investors, many millennial investors were welcomed to the world of Wall Street by a pair of the worst market collapses in decades: the Dot Com Bubble in 2000 and the Financial Crisis in 2008. Millennials had only begun to dip their toes into the investing waters only to have them bitten off by severe market sell-offs. Understandably, a recent Capital One ShareBuilder survey indicated that 93% of millennials are less confident about investing due to mistrust of the markets and/or a lack of investing knowledge. A 2015 Bankrate survey showed that only 26 percent of adults under 30 own any stocks at all. A related Goldman Sachs study found that only 18 percent of young adults trust the stock market as the best way to save for the future.
State Street recently revealed the end result of these fears: millennials are holding about 40% of their portfolios in cash. Unfortunately, that behavior ultimately leads to missing out on critical years of compounding returns when saving for retirement. While it’s reasonable for millennials to be skeptical of the market in the short-term, history and math show that buying and holding stocks at a young age has been the easiest way to retire wealthy since the turn of the 20th century. From 1900 to 1999, the stock market averaged a 10.4% annual return. At that rate of return, investing just $5,200 per year ($100 per week) every year from age 30 to age 59 would allow an investor to retire a millionaire. Albert Einstein once spoke of the power of compound returns. “Compound interest is the eighth wonder of the world,” he said. “He who understands it, earns it… he who doesn’t… pays it.” There’s no question that the Dot Com Bubble and the Financial Crisis were devastating for the stock market in the short-term. But the key to stock market investment is also the key to compound returns: time. Even an investor that bought an S&P 500 index fund at the height of the Dot Com Bubble would still find themselves up more than 40% today, well more than the 0% return of cash.
Even if millennials are aware of the benefits of owning stocks, mistrust of the financial community remains a hurdle. However, what millennials lack in trust for the stock market, they make up for in trust of themselves. Eighty-seven percent of millennials say that they trust themselves to make investment decisions on their own. That number is way ahead of the 68% of seniors who report a similar level of investing self-confidence. Tech-savvy millennials can now place their faith and their savings in alternative market investments, such as robo-advising sites and market motifs. Robo-advising companies like Wealthfront and Betterment allow clients to access automated money management services and algorithm-based trading advice. Robo-advisors operate based on the same underlying market principles that human financial advisors use, but clients don’t have to deal with management fees and the possibility of human error. For millennials that want to hand-select their own investment portfolio but maintain the safety of diversity, Motif Investing offers alternatives to traditional ETFs called motifs. Motif Investing customers can create their own “homemade” ETFs by selecting up to 30 stocks to include in a single motif, or theme.
Millennials that witnessed the last two market downturns have plenty of reason to be leery of the stock market. However, they must remember that, when it comes to retirement investing, a couple of years or even a decade of market volatility has relatively little impact on long-term returns. Alternative finance technology offers an unprecedented degree of control and transparency to millennial investors. Luckily, you don’t have to be Albert Einstein to recognize the power of starting a long-term market investment strategy at a young age and letting compounding returns work in your favor.
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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.