Personal loans have long been thought of as a last resort when unexpected costs or major life events come up. However, the rise of alternative lending has changed the way consumers think of this option.
Born of necessity
The main reason for the alternative lending boom? Simple necessity. In the aftermath of the Financial Crisis, banks faced tougher lending regulations, opening up a market for newer, disruptive platforms. Companies like Lending Club and OnDeck have already gone public and more IPOs are expected in the future. Foundation Capital, in fact, puts the industry’s absolute value at $1 trillion. The convenience, transparency and hands-on nature of alternative lending technology has also transformed the process of taking out a personal loan. Before, a personal loan required taking a trip to the bank, dealing with bank personnel, filling out tedious paperwork and hoping for the best. The only way to ensure you are getting the best rate available means- you would need to rinse and repeat this process at various banks. It’s understandable, then, that the idea of taking out a personal loan to pay for something like a family vacation is not part of Americans’ current lexicon. In the past, by the time borrowers got through with the hassle involved in rate shopping, they likely needed funding for another vacation.
A shift in thinking
Statistics generated by alternative lenders such as LendingClub show that borrowers’ attitudes toward personal loans have changed. These loans are no longer looked at as a last resort to be avoided unless absolutely necessary. Lending Club’s loan issuance statistics highlight the shift in thinking toward personal loans. In addition to taking out personal loans to pay off high-interest credit card debt or refinance and consolidate existing debt, more than 1 out of every 4 Lending Club customers now use personal loans to pay for vacations, car financing, medical expenses, home improvements, or other common everyday expenses.
Real world benefits
There are several real world benefits of alternative personal loans, including home improvements. More than $11.9 million of LendingClub’s loans in Q3 of 2015 were used for this category, for example. Perhaps borrowers now realize that smart home improvements can often be closer to an investment than an expense. In addition, personal loans are often used for a wide range of other big expenses. Rather than making five or more different credit card payments per month at much higher interest rates, a single personal loan can consolidate credit card debt at a lower rate. Weddings are another category where personal loans are becoming increasingly more common. The average cost of a wedding is around $30,000. Without help from loved ones, or a sizeable savings account you may not be able to front the entire cost but a personal loan can help ensure that you get the wedding of your dreams without budget-related sacrifices. But that’s not all. Often times, big expenses can come out of nowhere and instantly create financial chaos in your life. A personal loan can be the saving grace when unexpected medical or funeral expenses arise or if insurance doesn’t completely cover damages from a fire or other natural disaster. Applying for an alternative loan can allow you to manage these unexpected expenses quickly and responsibly.
Alternative lending has made personal loans so accessible and instantaneous that they are no longer simply the last resort in managing a financial catastrophe. A growing number of people are realizing they’re a resource that can be used for anything, from getting a car tune-up to expanding the home along with a growing family.
Disclaimer: The material provided on this site is not intended to provide legal, investment, or financial advice or to indicate the suitability of any Even Financial 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 Even Financial through hyperlinks, from third-party websites, are provided for informational purposes only. While Even Financial finds these sources to be accurate, it does not endorse or guarantee any third-party content.
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NEW YORK, NY, March 15, 2022 -- Even Financial ("Even"), the category-leading embedded finance marketplace and independently managed subsidiary of MoneyLion, Inc. (NYSE: ML), has announced a new partnership with Tally, a leading financial automation company, to include the company's low-interest credit offerings on its platform.
"Tally has built a powerful tech-enabled system to help people solve one of the biggest financial problems today: paying off credit card debt," said Phill Rosen, Founder and CEO of Even. "We're thrilled to welcome Tally's line of credit offerings to Even's unparalleled network of financial services providers."
Tally is designed to help its members pay off their debt faster and save them money on interest and late fees. Members can lower their monthly payment with Tally's lower-interest line of credit, if eligible. Typically, at least a 580 FICO score is needed. Tally's system is customized to save people as much money as possible.
"Americans today owe nearly $1 trillion in credit card debt. We know from our research that many want to pay down their debt but struggle to get started. That's where Tally comes in," said Jason Huynh, VP of Credit, Analytics & Operations at Tally. "Our system combines financial automation with a low-interest line of credit to give people the help they need to get on track to pay off their credit card debt for good. We're thrilled that our partnership with Even will allow Tally to help even more people."
The launch of Tally on the Even platform enables consumers to get matched with Tally's custom, low-interest line of credit accounts of up to $25,000 in just a few minutes. After getting matched, eligible consumers complete the process through the Tally app. There are no out-of-pocket costs.
Tally is the latest partner to join the Even marketplace, a growing network of over 400 financial services partners and 500 channel partners covering a breadth of financial services including loans, credit cards, mortgages, savings, and insurance products. Even's marketplace technology enables any company to add financial products to its business, with full compliance and security, at scale.
About Even Financial
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 2021 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.
Tally is a consumer financial tech company pioneering full-service financial automation to help people save money, pay down their debt and reach their goals sooner. Founded in 2015, the company built the first fully automated debt manager to help put billions of dollars back in people's pockets. In 2021, Tally was named to Fast Company's Most Innovative Companies list and to Quartz's Best Companies for Remote Workers. Previously, Tally made Forbes' Next Billion Dollar Startup list, Forbes' Fintech 50 list, and the app won Real Simple's Smart Money award. Learn more at meettally.com.
NEW YORK, NY, April 19, 2022 -- Even Financial (“Even”), the category-leading embedded finance marketplace and independent subsidiary of MoneyLion, Inc. (NYSE: ML), has announced it has now facilitated over $5 billion in consumer credit, as of March 2022. Leveraging machine learning and advanced data science, Even solves a significant pain point in financial services customer acquisition by seamlessly bridging financial service providers and channel partners via its industry-leading API and embedded finance marketplaces.
“Surpassing $5 billion in consumer credit facilitated through our marketplace is an enormous achievement for Even as we continue to help build the future of finance technology,” said Phill Rosen, Founder and Chief Executive Officer. “Access to credit has long been a challenge for many hard-working Americans, and we are dedicated to alleviating this issue by providing consumers personalized financial services offers that meet their needs, when they need it most. Reaching the $5 billion milestone reaffirms that our mission is driving significant value for both consumers and our partners."
Even has grown its embedded finance marketplace offerings beyond loans to cover a breadth of additional financial services including credit cards, mortgages, savings, and insurance products. Within loans, Even offers the largest network of premium, connected loan providers - across a wide array of products including unsecured personal loans, secured personal loans, line of credit, student loan refinancing, and auto loan refinancing. Leading financial services providers, such as LendingClub and SoFi, partner with Even to reach qualified consumers searching for loans, benefiting from Even’s unparalleled network and native integrations.
The company has continued its rapid growth trajectory in 2022, growing its network to include over 400 financial services partners and 500 channel partners. Even's marketplace technology enables any company to add financial products to its business, with full compliance and security at scale. Earlier this year, Even announced the close of its acquisition by MoneyLion, the award-winning digital financial platform, which will continue to advance their combined efforts of providing financial access and advice to hard working Americans.
About Even Financial
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 evenfinancial.com.