Online financial advisers, or "robo-advisors," give self-directed investors a way to take more control over their portfolio. Alternative investment companies such as Betterment, Wealthfront and Motif can provide investors with a cost-efficient, hands-on method of trading and managing their funds, but many investors wonder if robo-advisors can actually take the place of a flesh-and-blood financial advisor. Remarkably, in many cases, the answer is "yes."
Robo-advisors offer some compelling benefits over traditional financial advising models, the most apparent of which are low investment minimums and modest fees. Many firms have minimums as low as $5 to $10, while others don't have any minimum investment requirements at all, decreasing the barrier to entry. Online investment advising platforms also usually only charge from 0.25 to 0.75 percent in management fees, compared to one percent or more with traditional advisors. There is even a trend toward free robo-advising services, with companies such as WiseBanyan pioneering this innovative approach. The costs of making trades and other account adjustments are often more transparent as well, with clearly defined, straightforward fee schedules. All of these aspects work together to maximize investors' ROI. In addition, customers gain access to many of the same investment analysis and planning tools that are used by professional financial advisors, which makes it possible for these customers to make knowledgeable financial decisions on a DIY basis. Some robo-advisor firms even offer educational materials, such as webinars, emails and other resources, to help their customers stay informed. The automated approach to financial advising is also more convenient and less time consuming than having to schedule face-to-face or over-the-phone meetings with a professional investment manager. The customer-centric nature of robo-advisors also leads to a more user-friendly interface than traditional financial advisor dashboards, making it easier for investors to take control of their portfolios.
No investment is guaranteed, and they all carry some measure of risk and volatility. Even the best performing investments are subject to the ebb and flow of the financial markets, and these effects can be unpredictable. However, robo-advisory firms have a few safeguards in place to hedge against those risks. First and foremost, robo-advisory firms are required to file as Registered Investment Advisors with the Securities and Exchange Commission. This means they are legally and professionally bound to certain fiduciary duties and other legal requirements, including specific disclosures regarding fee structures, trading and brokerage processes, and conflicts of interest. In addition, most of these platforms are backed by the Securities Investor Protection Corp, insuring up to $250,000 in assets. These protections make automated advisory companies just as safe as traditional financial advisors on the consumer-protection front. In addition, these platforms use elaborate algorithms to develop automated recommendations based on responses to a questionnaire that measures an investor's return objectives and tolerance for risk. The platform then recommends a mix of investments that are diversified across a number of asset classes that include:
This diversification provides some protection against risk and loss, as investments are spread over a variety of sectors. Online advising platforms also allow for a more systematic approach to the development and maintenance of a portfolio. Investors are not only able to establish more concrete objectives, but better adhere to the plans that they create. This encourages investors to ride out periodic market fluctuations and reduces the return-jeopardizing urge to buy and sell unnecessarily during financial storms. However, robo-advisors also offer enough flexibility that you can easily change your asset allocation if need be.
The robo-advisor approach is increasing in popularity, and this trend is projected to continue into the foreseeable future. Much of this ability to successfully compete with the long-standing big names in financial and investment management is the similarity between robo-advisors and traditional advisors. The very basis of the robo-advising is to provide a reliable selection of exchange-traded funds that investors can basically place on autopilot, establishing a passive revenue stream. This strategy is similar to the turnkey asset management and wrap account programs offered by conventional advisors. However, in many cases, the simplicity, cost-effectiveness and hands-on ability offered by automated online financial advising trumps the services offered by traditional investment advisory firms such as John Hancock and Vanguard, especially for tech-savvy Gen Xers and Millennials. This growing demand for do-it-yourself advising services have not gone unnoticed by traditional advisory companies. In response to the encroachment on their market share, some long-standing firms have launched their own versions of online advising, as with Charles Schwab's Intelligent Portfolios service. In other cases, financial management companies have formed alliances with robo-advisory platforms, such as the partnerships Fidelity Investments formed with Betterment and Learnvest. As the robo-advising method of financial management continues to expand, investors can expect to see additional offerings from conventional advisors and newly established automated advising platforms alike. While investors may be wary of this newcomer on the playing field, the advantages offered by robo-advising services have them poised to become staples of financial management. As with all financial matters, due diligence and careful consideration are key. However, those who choose to go the self-directed route may just find that financial advisors aren't the only effective way to invest.
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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.