One of the most interesting developments I have seen at Even is the sea change happening in the financial advisory sector. Financial advisors have historically focused on helping their clients manage their wealth, many of them refusing to take on clients who have less than $1M in assets. But with the introduction of robo-advisors like Betterment and Wealthfront, financial advisors have been forced to rethink how they help their clients. It’s no longer enough to help clients balance their portfolio when that task can be mostly accomplished by an algorithm. Financial advisors are realizing that they need to help their clients more holistically, and that includes looking at both sides of the balance sheet - not just with assets, but also with debt.
53 million US households have a combined $1 trillion in credit card debt, and that debt hurts their credit score and is not a wise economic choice if it can be avoided, due to the relatively high interest rates of credit cards. Further, 45M borrowers have over $1.5 trillion in combined student loan debt. These clients often feel that their next best dollar should be going to paying off that debt, which holds them back from developing an investment portfolio until much later in life.
Financial advisors are finding that offering solutions to help their clients deal with their debt, enabling them to put a plan into place, is often a great door opener to a long-term trusted relationship. At the same time, once that plan for debt repayment is in place, clients feel more comfortable putting money to work in the market.
Financial advisors are generally more familiar with traditional lending products like securities backed loans and mortgages, and might seem wary of the newer products that have proliferated as part of the fintech era born out of 2008. One of the key instruments to help people get out of credit card debt has been the advent of the personal loan. Financial advisors can easily identify when a client or prospect has a mound of revolving credit card debt, and then can support them by enabling them to refinance and/or consolidate that debt onto an installment loan called a personal loan. This loan doesn’t require the client to pledge any of their assets, rather it is an unsecured loan underwritten mostly based on credit history and income, with limits up to $100,000 and often single digit APR’s.
Many financial advisors recommend that their clients have at least six months of cash expenses on hand in case of an emergency, like losing a job or a medical issue. The obvious question a client might ask is then: “where they should keep that money?” Historically advisors haven’t had a great answer for this, but many advisors are now starting to plug into marketplaces where they can help their clients compare different high-yield savings and cash management accounts.
The evolution of the financial advisor space is something to watch in the coming years. As advisors are forced to differentiate from their algorithmic counterparts, the best weapon is the strength of the relationship and the advice they can bring. When I worked at SoFi, (now an Even partner), I was always amazed to see how happy their customers were when they refinanced their student loans or credit card debt, and how much of that positive halo accrued to the SoFi brand. Financial advisors of the future would be well served to learn from that and start using debt solutions as a way to help their clients take the first important step in their financial journey.
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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.