Embedded Finance Marketplaces

The lending ecosystem for personal loans experienced unprecedented disruption in Q2 of 2020, due to the COVID-19 pandemic and ensuing economic impact. In a swift reaction, peer-to-peer loan providers were forced to freeze acquisition efforts, both digitally and directly, as investor demand in the personal loans market came to a halt.

With quarantine measures easing up and lending performance data coming in for Q3, loan providers are taking back to the market with cautious optimism. Outstanding loan performance data, as reported by dv01, signals a 70% recovery (to pre-Covid levels) of loan impairments (i.e., a delinquency or modification of a loan’s original repayment terms). This suggests that a majority of borrowers have been able to pay/manage their outstanding loans and that investors can expect normal returns, which allows lending platforms to unpause and/or expand underwriting criteria.

Loan providers are adopting the following strategies to increase acquisitions during Q4:

Expanding credit boxes - Providers restricted originations to only the most creditworthy consumers during Q2. Now, providers are using updated underwriting criteria to extend offers to wider audiences outside of the super prime credit box. We expect more density and better offers for near-prime and subprime consumers.

Adopting alternative credit models - Despite economic hardship, traditional credit scores have risen as credit cards have been paid down and consumer spending has dropped. The rise in scores, however, does not reflect the crunch on consumer cash flow and ability to repay loans. Providers are leveraging alternative credit models to distinguish cash-strapped consumers from those with liquidity. We expect providers using diverse credit models to perform more aggressively and profitably.

Implementing additional verification - Providers are being more thorough in qualifying consumers during the application process, adding steps like employment verification to wider audiences. We expect an increase in a consumer’s time to fund as proving income or employment verification can add additional time from the original application to the disbursement of funds.

Restaffing operations - Providers with applications and flows that are 100% digital will scale faster. Those who rely on call centers to walk consumers through applications will experience a slower return to market as they rush to hire personnel that were lost to Q2 cutbacks. We expect digital-first providers to gain considerable market share.

Consolidating partnership channels by cost effectiveness - Acquisition teams at providers are also smaller, meaning the ability to manage multiple direct partnerships is curtailed. Providers are working to migrate direct relationships to API platforms, which reduces relationship management responsibilities while increasing conversion rates and cutting data costs.

We predict that the prevailing loan providers of Q4 will be digitally-focused, using alternative underwriting to identify previously disenfranchised consumers, while leveraging end-to-end digital experiences like Even over direct partnerships to scale and gain market share. Affiliate partners looking to monetize will see greater success in tailoring their audiences to align with the desired consumer populations of these foremost and optimized loan providers.

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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HAVEN LIFE

Haven Life’s All-Digital Life Insurance Application Experience Launches on Even Financial’s Leading Life Insurance Search Engine

Even features the industry’s largest multi-carrier, all-digital life insurance marketplace New York, New York – August 16, 2021 – Even Financial (“Even”), the leading search, comparison, and recommendation engine for financial services, has announced the launch of Haven Term and Haven Simple on its life insurance marketplace platform. Leveraging machine learning and advanced data science, Even solves a significant pain point in financial services customer acquisition by seamlessly bridging financial institutions and channel partners via its industry-leading API and embeddable solutions.   With the addition of Haven Term and Haven Simple, Even has further expanded its extensive network of premium life insurance offerings, strengthening its position as the industry’s largest multi-carrier, all-digital life insurance marketplace. Haven Life, which offers Haven Term and Haven Simple, and is backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual), is known for its customer-centric approach and for its commitment to making life insurance more affordable and accessible. Haven Life’s term life insurance offerings will be available on Even properties and via its wholly owned subsidiary LeapLife.   “In these uncertain times, the majority of U.S. adults want the financial security of high-quality life insurance, but are often dissuaded by the complex application process and need to complete an in-person medical exam,” said Phill Rosen, Founder and CEO of Even Financial. “Haven Life’s groundbreaking, all-digital application experience brings tremendous accessibility and peace-of-mind to consumers. We’re thrilled to welcome them to the Even platform.”   The launch of Haven Term and Haven Simple on the Even platform enables consumers to get matched with medically underwritten term life insurance policies that they can apply for and, if approved, purchase instantly online. While most Haven Term applicants will need to take a medical exam, Haven Simple applicants do not. Haven Life’s offerings expand the variety of life insurance options already available to consumers through Even’s API.   “Haven Life is committed to meeting life insurance customers wherever they are — and often, it's where they are managing the rest of their financial life," said Wade Seward, Head of Distribution Strategy at Haven Life. "On the heels of introducing even more affordable pricing for the Haven Term product, our partnership with Even Financial allows us to marry that affordability with greater accessibility to offer comprehensive financial protection to shared clients with ease and efficiency.”    Even entered the life insurance industry in 2020 through its acquisition of LeapLife, a leading insurtech and licenced life insurance agency. Since that acquisition, Even has worked with its large network of channel partners to make the process of getting personalized life insurance fast, easy, and accessible for consumers. In addition to Haven Term and Haven Simple, products offered by leading insurance companies including Lincoln Financial Group, Pacific Life, and Mutual of Omaha are available through LeapLife, Even’s life insurance platform. Companies such as TransUnion and Lantern by SoFi rely on Even’s embedded finance marketplaces to power 100% digital personalized life insurance policy quotes for their customers, with live agent support.   Even has continued its rapid growth trajectory in 2021 by reaching over $3 billion in consumer credit issued through its API and expanding its platform to over 800 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 (such as SoFi) and channel partners (such as 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 Haven Life Insurance Agency   Haven Life Insurance Agency, LLC (Haven Life) is re-thinking how people financially protect the ones they love. Haven Life is committed to delivering exceptional products, delightful purchasing experiences, and meaningful moments of service to the modern life insurance customer. Haven Term is a Term Life Insurance Policy (ICC21 Haven Term in certain states, including NC) issued by C.M. Life Insurance Company (C.M. Life), Enfield, CT 06082. In New York (DTC-NY), and California (DTC-CA), and other states, it is issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001.    Policy and rider form numbers and features may vary by state and may not be available in all states. Haven Term is available through Haven Life Insurance Agency, LLC (Haven Life), whose agency license number in California is OK71922 and in Arkansas, 100139527. Both Haven Life and C.M. Life are wholly owned subsidiaries of MassMutual.   Please note that issuing the policy or paying its benefits depends on the applicant’s insurability, based on their answers to the health questions in the application, and their truthfulness.   MassMutual and its subsidiaries C.M. Life Insurance Company and MML Bay State Life Insurance Company are rated by A.M. Best Company as A++ (Superior; Top category of 15). The rating is as of June 1, 2021 and is subject to change. MassMutual has received different ratings from other rating agencies.   Media Contact media@evenfinancial.com    

HAVEN LIFE

Haven Life’s All-Digital Life Insurance Application Experience Launches on Even Financial’s Leading Life Insurance Search Engine

YAHOO! FINANCE

Yahoo! Finance: Even Financial Reaches $3 Billion In Credit Issued Milestone

Even has surpassed a significant threshold in credit issued, having now facilitated over $3 billion in consumer credit as of July 2021. The milestone is significant in the financial services industry, as Even has also expanded its platform to over 800 partners.    Click below to read more at Yahoo! Finance.

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.