The rise of the “on-demand economy” has ushered in a new breed of businesses that operate based on the idea that customers can play a larger role in their experiences. Companies such as Airbnb, Snapgoods and RelayRides have all burst on to the scene as a result of the push toward putting more control in the hands of the modern customer. Perhaps no company exemplifies the disruptive potential of the on-demand economy more than ride-sharing company Uber. While Uber is already making waves in the transportation industry and turning the traditional taxi business upside down, peer-to-peer (P2P) lending companies pose a similar threat to traditional banks.
Uber’s Big Splash
Most of these new on-demand economy businesses come about when a traditional, established business leaves open a window of opportunity due to inconvenience, inefficiency or high costs. In the case of Uber, the traditional taxi business in major U.S. cities has historically included a bit of all three of these characteristics. Uber founders recognized that the idea of standing on a street corner and helplessly flailing a hand in the air or calling a dispatch operator and hoping that a cab will show up within the next several hours is not the optimal way to get from place to place in a modern city. In a matter of years, Uber has gone from an unknown startup to a $41 billion company with 160,000 active drivers that have generated more than half a billion dollars in fares.
Take Control Of Lending Banking customers have the same helpless feeling of someone standing on a busy street corner hailing and whistling for a lone passing taxi. To borrow money, you must meet the bank’s qualifications, the bank’s credit score, pay the bank’s interest rates and bend over backwards for the bank. On the other hand, if you want to get paid interest on your capital, you must agree to whatever interest rates and terms the banks set on CDs or other financial products. When it comes to traditional lending and borrowing, there is little to no negotiation and little choice in the matter. Sure, one bank’s terms might be slightly better than another, but there is generally very little difference between competitors’ lending and borrowing standards.
The Freedom of the Marketplace Marketplace lending companies have recognized that both lenders and borrowers want more freedom when it comes to loan creation. Instead of a complicated, time-consuming process, borrowers can go online, enter a few critical pieces of information and be matched with a lender within a matter of hours. Instead of being turned down because a particular loan does not meet the standards of a bank’s core lending business, these online platforms allow both borrowers and lenders to create loans that are outside the box of traditional bank lending.
Disruptive Power Traditional banks likely looked at marketplace lending the same way that the taxi business looked at Uber when it first launched. However, like Uber, marketplace lending’s true potential is beginning to turn heads. According to a PricewaterhouseCoopers (PwC) report, P2P platforms accounted for about $5.5 billion in loans in 2014. While this number is only a drop in the massive present-day banking ocean, PwC analysts project the market could balloon to $150 billion over the next decade.
Wake-Up Call The on-demand economy is still in its infancy, and certain segments, such as ride-sharing, have gotten off to a strong head start. However, more people are beginning to recognize the true potential of putting the power in the hands of the customer. As the movement toward alternative finance continues to grow, traditional banks could be in for a major wake-up call.
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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.