Even Staff

2016-03-16

These 4 Trends Are Changing The Way We Pay

these-4-trends-are-changing-the-way-we-pay

  While banks have generally been the center of concerns over the disruptive potential of alternative finance, the credit card industry is also facing a huge amount of pressure from innovative and disruptive technology. Here’s a look at four trends that are threatening the status quo in the credit business.

 

Data is king

 

Credit card companies have collected data on their customers for years, but with new apps and online AltFi services popping up constantly, data collection and data interpretation will likely play a huge role in separating the winners from the losers in coming years. In an intensely competitive environment, efficiency becomes even more important, and customer data is the key to providing customized products and services. The more detailed the data collection can be, the less money and opportunity slips through the cracks. One of the ways certain online lenders have been able to offer customers lower interest rates on loans is by incorporating alternative data, such as college degrees, rather than just FICO scores into their algorithms.

 

Internet of Things

 

Let’s face it: the Internet is no longer about sitting down at a computer. Connected devices and wearables are taking over the world, including the field of finance. Swiping physical credit cards could soon be a thing of the past, as well as the security risk of lost or stolen cards. This trend also ties into the data collection trend because the connected world can provide critical information about when and where customers spend money and can even facilitate or completely automate financial transactions. In addition, the Internet of Things allows for location-based promotions. Imagine receiving a text notification involving an airline miles promotion as soon as you walk in the airport. This example is just one of the countless ways the Internet of Things has and will change the financial world.

 

Digital payment options

 

The mobile payment industry is a $1 trillion industry and could soon make up two-thirds of all purchases. Apple Pay is perhaps the most visible new digital payment option, but Google, Verizon, Amazon, Facebook and other surprising players have also stepped into the digital payment game in recent years. In addition to digital payment platforms, cryptocurrencies like Bitcoin offer another payment option, as well as a potential investment alternative to volatile and politically-vulnerable sovereign currencies. Once again, these innovations are not about matching the traditional credit card payment experience, they are about discovering a completely better way to pay.

 

Cybersecurity

 

Finally, identity theft has become one of the biggest global financial threats, making cybersecurity a top priority in finance.  U.S. credit card companies finally adopted “chip and PIN” technology that goes a long way in the prevention of card skimming, but innovations such as MasterCard’s biometric payment card make fraud nearly impossible. In fact, researchers at Red Hat also recently declared Apple Pay “more secure than your cards.”

 

Takeaway

 

The finance industry has been swept up by an unprecedented wave of innovation in recent years, and it’s still too early to predict where the AltFi revolution will eventually take over the credit card business. However, one thing seems certain in this new financial environment: no matter what, the customers will come out on top.

Disclamer: 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. Although we promote products and services form our partners, our opinions are our own.

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Goldman Sachs-backed Even Financial, a digital matchmaker between banks and customers, just bought an insurance startup as life insurers are seeing policy applications boom

Even Financial has acquired LeapLife, a leading insurtech platform. The addition of LeapLife allows Even to immediately commence its insurance capabilities, aimed at simplifying and enhancing the way consumers search, compare, and get matched with insurance policies (LeapLife’s existing platform will continue to operate from leaplife.com). Business Insider wrote an article about it, interviewing our CEO and Founder Phill Rosen.

Even Financial Launches Insurance Offerings With Strategic Acquisition of LeapLife, a Leading Insurtech Platform

Pioneering B2B Fintech Expands its Industry-Leading Financial Services Monetization Platform to Help Insurance Carriers Find and Connect with Consumers New York, New York – April 22, 2020 – Even Financial (Even), the leading API for financial services search, acquisition, and monetization, announced today that it will be launching services for the insurance industry through the acquisition of LeapLife, an insurtech platform and digital life insurance agency.  The addition of LeapLife allows Even to immediately commence its insurance capabilities, aimed at simplifying and enhancing the way consumers search, compare, and get matched with insurance policies (LeapLife’s existing platform will continue to operate from leaplife.com). Even and LeapLife now offer the only full end-to-end, multi-carrier digital life insurance marketplace experience. Over the coming weeks, Even will further integrate LeapLife’s technology and insurance offering into its industry-leading API, making turnkey insurance marketplaces programmatically available to a vast network of channel partners — when and where their consumers are most in need — while also enabling the company to expand to other insurance sectors, including homeowners, renters and auto insurance. This adds to Even’s peerless breadth of real-time, personalized financial product offers — an expansive suite that already includes loans, savings, credit cards, and more.  “Even’s goal to evolve how financial institutions find and connect with consumers is not limited to loans or credit cards, but applicable to all financial products and services, including insurance,” said Phill Rosen, Even Founder and CEO. “Despite its importance, purchasing life insurance is often an overwhelming and inconvenient experience. With more than $600 billion in premiums paid each year, and only 6% of policies sold completely online, we see tremendous opportunities to help modernize the life insurance industry and offer solutions that solve challenges for consumers and carriers alike.”  LeapLife is an established insurtech platform and digital life insurance agency that utilizes data science, deep underwriting knowledge, and proprietary technology, enabling consumers to apply for instant-decision life insurance policies with real-time quotes. LeapLife works with many best-in-class insurance carriers to offer consumers a seamless experience from beginning to end. This approach made Even and Leaplife a perfect match. As a digital insurance broker, LeapLife offers personalized life insurance recommendations based on a consumer’s unique needs. Paired with the Even API, which enables customer acquisition for insurance to be native and programmatic, consumers benefit from a more streamlined, transparent, and highly personalized experience when shopping for life insurance.  Just as Even’s 2018 acquisition of Birch (the award-winning credit card rewards app) allowed the company to accelerate its expansion into credit cards, the addition of LeapLife will similarly put Even at the forefront of consumer insurance offerings.  Charles Svirk of MassMutual Ventures, an investor in Even, said “The Even and LeapLife teams share a vision that the future of insurance acquisition will rely on the power of data-driven, programmatic distribution. We are thrilled to support them as their industry experience, impressive technology, and trusted relationships will help scale Even’s insurance offering and build partnerships to provide these critical innovations in insurance acquisition.” The Even API and platform solve significant, long-standing pain points in financial services acquisition by seamlessly connecting supply and demand. Even has continued its rapid growth trajectory in 2020, surpassing over $1.5 billion in credit issued through its API and expanding its platform to over 400 partners. Even has secured over $55 million in funding from major financial institutions, venture capital firms, and fintechs to back its goal to evolve the financial services acquisition ecosystem.   About Even Financial Founded in 2015, Even Financial is a B2B fintech company that is transforming the way financial institutions find and connect with consumers. By seamlessly bridging financial institutions (including American Express, Goldman Sachs, and SoFi) and channel partners (such as TransUnion and The Penny Hoarder) via its industry-leading API, Even turns any consumer touchpoint into an ROI-driven, fully customizable, programmatic acquisition source for financial product offers with full compliance, security, and scale across loans, savings, credit cards, insurance, and more. Even is backed by leading financial services firms and VCs including American Express Ventures, Canaan Partners, Citi Ventures, F-Prime Capital (Fidelity), Greatpoint Ventures, Goldman Sachs, LendingClub, and MassMutual Ventures. Even is the leading search, comparison, and recommendation engine for financial services. Media Contact: media@evenfinancial.com

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