MoneyLion, the all-in-one financial management app for the middle class, has just raised $42 million in a Series B funding round. With the latest funding, the New York based company has now raised a total of $67 million since it was founded back in 2013.
The multi-functional app helps users manage many aspects related to their finances including their savings, wealth management, and loans. With MoneyLion, users don’t need any other financial service as the company managed to squeeze multiple offerings of service and bank providers into one app.
Additionally, the app is also fairly simple to use. Users simply connect all their bank accounts and credit card to the app and the app then does all the rest. It provides the users with all the personalized advice regarding their finances that they could need based on spending patterns, loans and monthly income.
The biggest contributor to the Series B funding was investment service Edison Partners who itself invested $27 million in MoneyLion. The Managing Partner at Edison Partners, Chris Sugden, revealed that it was MoneyLion’s convenience for the middle class that convinced the investment firm to put their faith in MoneyLion. According to Sugden, the middle class is largely ignored by major financial institutions.
“Many traditional financial institutions and fintech platforms cater to super-prime, mass affluent consumers, which is only a small part of the U.S. market. In fact, more than 75 percent of America’s consumers remain underserved by financial services provides. By delivering both a liability and wealth management digital solution on the same platform, MoneyLion brings a complete financial toolkit for consumers who earn less than $100,000” he explained.
MoneyLion also includes a rewards system. Customers get rewarded with points for factors such as keeping their credit usage low, paying bills on time and tracking their savings. They can use those points to receive gift cards along with other incentives.
Despite only succumbing to the middle class the company can boast with impressive returns. The company has more than 1.5 million users and reported a 178% growth in revenue. Most of the company’s revenue comes from loan products that they have on offer; The company has provided more than 250,000 loans to date.