Even Staff

2015-12-09

What is heck is "Marketplace Lending?"

“Alternative financing,” “marketplace lending,” “crowdfunding” -- these buzzwords are here to stay, so we think it’s time to define them. As these financial products have grown in popularity, the awareness of how vast this landscape stretches has remained flat. Here’s a breakdown of what these terms mean and the countless opportunities they provide.

 

What is alternative finance?

 

The alternative finance revolution came about because the banking industry tightened its lending practices after the Financial Crisis. Unfortunately, demand for loans during the post-crisis economic recovery exploded, and borrowers were forced to start looking for alternatives to traditional financing. Marketplace lending, crowdfunding, and alternative investing are just three examples of modern products and services that technology and innovation have now made available to customers for the first time.

 

Marketplace Lending

 

Marketplace lending involves the use of online platforms to obtain loans from sources other than traditional banks. Marketplace lending directly connects potential borrowers with potential lenders online instead of the typical trip to the local bank to apply for a loan. There are marketplace lending platforms geared toward consumers (Prosper, Avant, Upstart) as well as platforms focused on small business (Kabbage, LendingClub, On Deck). In addition to marketplace lending, another new source of alternative finance is crowdfunding. Crowdfunding involves pooling the capital of a number of small investors to reach a fundraising goal. Borrowers can use crowdfunding sites such as Indiegogo, Kickstarter and EquityNet to fund anything from weddings to home improvements to small business ideas.

 

Alternative investing: Motifs, robo-advisors and more

Alternative finance is not all about lending. In recent years, a number of new non-traditional investment opportunities have sprung up as well. One of these new alternative investment strategies is motif investing. The popularity of ETFs has exploded in the past decade, and the company Motif Investing takes the idea of an ETF one step further. Like ETFs, “motifs” are collections of stocks that represent a common theme. However, unlike ETFs, Motif Investing customers can hand-select their own basket of up to 30 stocks for each motif. In that sense, motifs are like homemade ETFs. Robo-advisors are another modern alternative spin on traditional financial advisors. Platforms like Betterment and Wealthfront offer customers automated money management services, including the use of algorithm-based trading advice. Robo-advisors typically offer customers low-cost financial advice by eliminating the middle man and providing customers direct access to the same statistics that human financial advisors typically use to make investment decisions. With robo-advisors, modern investors no longer have to pay exorbitant fees for the “human touch.” Robo-advisors use the same underlying market principles that human financial advisors use.

 

Neo-banks

 

Perhaps no innovation sums up the spirit of the alternative financing revolution more than neo-banks. Neo-banks are a new breed of banks that lack physical brick-and-mortar branches and instead offer mobile and technology-centric banking services to modern customers. Banking is done via mobile phones or local ATMs, and the savings that the neo-banks log by choosing not to operate branch locations can be passed on to the customer in the form of lower fees or invested in superior digital support and 24/7 customer service. Top neo-banks are all FDIC insured and include names like Moven, Simple and GoBank.

 

Doing better than the status quo

 

The terminology of alternative finance can be confusing at first, but the ideas behind it are elegantly simple. The simplest idea of all is the driving force behind all alternative finance ideas: doing better than the status quo. The Internet and mobile age has ushered in the first major challenge to the traditional big-bank model. With all the modern alternatives out there, why should bank customers be satisfied with the way things have always been done?

 

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

Proven Scale & Trust

$525B+

in consumer applications for financial services

100M+

consumer profiles generated

6.5 Million+

applicants routed monthly

What our partners are saying

"... 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."

"... a streamlined consumer experience, helping millennials with no collateral, budget, or saved money. Even’s impressive matching algorithms simplify the process of finding the best personal loans to meet your needs."

"... a truly modern and easy to use platform for the financial services marketing world. They make it easy to develop consumer friendly, innovative products in a space dominated by legacy platforms."

"... 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."

"... a streamlined consumer experience, helping millennials with no collateral, budget, or saved money. Even’s impressive matching algorithms simplify the process of finding the best personal loans to meet your needs."

"... a truly modern and easy to use platform for the financial services marketing world. They make it easy to develop consumer friendly, innovative products in a space dominated by legacy platforms."

Mike Doniger
Head of Business Development and Partnerships

Awards

Press

Read all about it!

Even Financial Partners with Figure to Add Blockchain-Enabled Personal Loan Products to its Financial Services Marketplace
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 media@evenfinancial.com
PYMNTS: Even Launches Embedded Finance App on Salesforce
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.
Even Named to Forbes’ List of “America’s Best Startup Employers” for 2021
FORBES
Even Named to Forbes’ List of “America’s Best Startup Employers” for 2021
After evaluating 2,500 American startups with at least 50 employees, Even has been named in the Top 500 of Forbes’ second annual list, which recognizes companies that stand out in: employer reputation, employee satisfaction, and growth.   Click below to see full listing.