Even Staff

2020-09-08

Have You Noticed This Change In The Financial Advisory Sector?

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. 

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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"... a streamlined consumer experience, helping millennials with no collateral, budget, or saved money. Even’s impressive matching algorithms simplify the process of finding the best personal loans to meet your needs."

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"... generating some of the highest approval rates and conversion rates among our online acquisition partners. The transparency and focus on data have allowed us to drive consistent growth and success each month. "

"Even enabled MoneyLion to... streamline our user experience, serve a broader set of our customers, and improve key monetization metrics... driving 4x+ growth since launch."

"... a streamlined consumer experience, helping millennials with no collateral, budget, or saved money. Even’s impressive matching algorithms simplify the process of finding the best personal loans to meet your needs."

"... a truly modern and easy to use platform for the financial services marketing world. They make it easy to develop consumer friendly, innovative products in a space dominated by legacy platforms."

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Even Financial Partners with Figure to Add Blockchain-Enabled Personal Loan Products to its Financial Services Marketplace
EVEN
Even Financial Partners with Figure to Add Blockchain-Enabled Personal Loan Products to its Financial Services Marketplace
New York, New York – June 2, 2021 – Even Financial (“Even”), the leading search, comparison, and recommendation engine for financial services, has announced a new partnership with Figure to launch the company’s personal loan products on the Even platform. Leveraging machine learning and advanced data science, Even solves a significant pain point in financial services acquisition by seamlessly bridging financial institutions and channel partners via its industry-leading API and embeddable solutions.   Figure is a fintech company that leverages AI, blockchain, and analytics to deliver innovative consumer financial products with speed and ease. Figure has dramatically decreased the time it takes for consumers to secure loans and has significantly reduced the costs associated with loan origination, servicing, financing, and capital markets execution. The company was founded in 2018 to unlock new access points for consumer credit products that can transform the financial lives of its customers. In addition to personal loans, it provides mortgage refinancing and home equity release solutions, including home equity lines of credit, home improvement loans, and home buy-lease back offerings for retirement.   Figure is an exciting, advanced provider that is driving transformational change in consumer credit,” said Phill Rosen, Founder and CEO of Even Financial. “We’re thrilled to welcome them to Even’s unparalleled network of loan products.”   Shwetabh Gautam, Director of Financial Institution Partnerships at Even added: “We continue to see a strong resurgence in the demand for lending products across the millions of consumers Even surfaces offers for each month. The addition of cutting-edge partners like Figure strengthens our ability to connect consumers with the loans best suited for their unique needs.”   Even offers the largest network of premium, API-connected loan providers. Enterprises and established publishers such as MoneyLion and TransUnion partner with Even to power financial product offers for loans and other financial services including insurance, credit cards, and savings. Within loans, Even continues to expand its vast offering, recently launching products for secured lending, line of credit, and auto refinancing.   The launch of Figure on the Even platform enables consumers to get matched with personal loans of up to $50,000. Figure offers a 100% online application that allows applicants to apply and see their rate in minutes and access funding in as few as two days.   “Phill and the team at Even share our vision of leveraging blockchain technology to make financial services simpler, faster, and personalized. Through the Even platform, we will be able to reach a broader and more diverse set of consumers seeking our innovative credit products,” said Brad Simmons, CMO of Figure.   Even has continued its rapid growth trajectory in 2021, facilitating over $3 billion in consumer credit issued through its API and expanding its platform to over 400 partners. Earlier this year, Even was named one of “America’s Best Startup Employers'' by Forbes for 2021 and placed in the Top 50 of the 2020 Deloitte Technology Fast 500, which recognizes the fastest growing tech companies in the world.    About Even Financial Founded in 2014, Even Financial is a B2B fintech company that is transforming the way financial institutions find and connect with consumers. As the leading search, comparison, and recommendation engine for financial services, Even seamlessly bridges financial institutions (including American Express, Goldman Sachs, and SoFi) and channel partners (such as MoneyLion and TransUnion) via its simple yet robust API and embeddable solutions. Even turns any consumer touchpoint into a comprehensive financial services marketplace with full compliance and security at scale. The company is backed by leading financial services firms and VCs, including American Express Ventures, Canaan Partners, Citi Ventures, Fidelity’s F-Prime Capital, Greatpoint Ventures, Goldman Sachs, LendingClub, and MassMutual Ventures. Learn more at www.evenfinancial.com.  About Figure Figure is transforming the trillion dollar financial services industry using blockchain technology. In three short years, Figure has unveiled a series of fintech firsts using blockchain for loan origination, equity management, private fund services, banking, and payments sectors – bringing speed, efficiency, and savings to both consumers and institutions. The company was founded in 2018 by serial technology entrepreneur Mike Cagney, who also founded SoFi and built the company into a multi-billion dollar business under his leadership as CEO. Learn more at www.figure.com.   Media Contact media@evenfinancial.com
PYMNTS: Even Launches Embedded Finance App on Salesforce
PYMNTS
PYMNTS: Even Launches Embedded Finance App on Salesforce
Now, financial advisors and other businesses will have a way to leverage Even’s platform for their clients. ‘Financial Products for Salesforce’ - Powered by Even, a plug-and-play app available on the Salesforce AppExchange, matches consumers with real-time, personalized financial product offers.   Click below to read more at PYMNTS.com.
Even Named to Forbes’ List of “America’s Best Startup Employers” for 2021
FORBES
Even Named to Forbes’ List of “America’s Best Startup Employers” for 2021
After evaluating 2,500 American startups with at least 50 employees, Even has been named in the Top 500 of Forbes’ second annual list, which recognizes companies that stand out in: employer reputation, employee satisfaction, and growth.   Click below to see full listing.