$525B+
in consumer applications for financial services
Partner Solutions - Demand
Zachary Burnett
2021-07-01
What Does the Expanded Child Tax Credit Mean For Your Business?
The $1.9 trillion American Rescue Plan Act (signed into law in March 2021) implemented several initiatives aimed at helping Americans recover from financial difficulties related to the COVID-19 pandemic. The stimulus package included $1,400 direct relief payments, an extension of weekly unemployment benefits through September 2021, and an advance on Child Tax Credit payments, which were also expanded to as high as $3,600 annually per child.
With the advance and expanded Child Tax Credit payments anticipated to hit bank accounts on July 15th, and every mid-month point through December (the remaining half is claimed when families file their 2021 tax returns), what should Even’s partners expect with regard to changes in consumer intent? And what can be done to mitigate any potential losses?
What to Expect
Even does not anticipate a drastic impact to consumer demand for the following reasons:
Fewer taxpayers qualify for this benefit than those that did for the $1,400 stimulus checks. Credit only available to individuals with annual income of up to $112,500 and joint filers of up to $150,000 per year, for children age 17 and under.
The payments are an advance on tax credits; qualified taxpayers may opt out of the monthly advance, choosing to receive the lump sum during the 2021 tax season (to fund large purchases or reduce tax liabilities). The plan increases the yearly per-child credit from $2,000 to a maximum of $3,600; the effective increase is $1,600 per child per year at most.
As a result, the impact will be felt most with family-oriented borrowers, especially those who meet all the criteria for the expanded Child Tax Credit.
How to Supplement Monetization Rates
You may not be able to entice families with extra cash flow to take out new loans; you can, however, expand your content and offerings to cater to audiences with stronger demand, in order to bolster your revenues. Here is what Even suggests:
Focus on Student Loan Refinancing
Even has seven SLR partners ready to help consumers refinance loans, including full credit spectrum coverage after onboarding additional FI partners in Q1 and Q2 of 2021.
Consumers with private loans have refinanced in large volumes during 2020 (and into 2021) to take advantage of the historically-low federal reserve interest rate. The Fed signaled recently that rates will remain between 0.00% and 0.25%, with little probability of increase before 2023.
Federal student loan forbearance ends on Oct. 1st, 2021, and analysts do not expect sweeping student loan forgiveness from the current administration before then. We expect a large influx of consumers refinancing federal loans to take advantage of lower interest rates.
Ask your partner manager how to prepare today for the anticipated volume in student loan refinancing.
Consider Auto Loan Refinancing
This offering is new to the Even platform. We are ready to launch with beta partners willing to help us build this marketplace in tandem with our existing financial products and services.
Indicate your interest to your partner manager to find out next steps.
Home Equity Line of Credit product (HELOC)
If your audience includes homeowners, let us know. We are working to seize the HELOC opportunity with our existing lenders’ offerings, and are inquiring among our relevant channel partners to prioritize this effort.
Consumer demand will continue to fluctuate based on macroeconomic conditions. That is why it’s imperative to maintain growth using Even’s embedded finance marketplace, which provides real-time, personalized offers across a variety of products to best meet your consumers’ needs.
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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What our partners are saying
"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."
"By implementing Even’s technology, we have been able to build a multi-vertical financial marketplace and more than double revenue and engagement."
"Even has been one of our biggest drivers of growth within our personal loans vertical, and they have made it easy and flexible to provide our users the best personalized loan offers for their needs."
"... 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."
"By implementing Even’s technology, we have been able to build a multi-vertical financial marketplace and more than double revenue and engagement."
"Even has been one of our biggest drivers of growth within our personal loans vertical, and they have made it easy and flexible to provide our users the best personalized loan offers for their needs."
"... 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."
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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
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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.