Partner Solutions - Demand
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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Even Financial Adds Tally's Low-Interest Line of Credit to its Embedded Finance Marketplace
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.
About Tally
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.
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Even
Even Financial’s Embedded Finance Marketplaces Surpass $5 Billion in Credit Facilitated
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.
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