MoneyLion Revenue Rises Amid Changing Loan Landscape

MoneyLion said it recorded rising revenue this quarter after developing new personal finance tools.

The financial app released quarterly earnings Tuesday (Nov. 7) showing revenues of $110 million, up 24% from the same quarter last year. 

Co-Founder and CEO Dee Choubey said the results show the “strength and resiliency” of MoneyLion’s business, which includes mobile banking, investing and personal loans.

“We continue to leverage our compounding proprietary data sets through various customer insights, and we continue to innovate our technology by developing and releasing new product features that exist within our consumer-facing personal financial management product set and are also available to our 1,100+ enterprise partners.”

The company said it had diversified its product mix this quarter, expanding into non-lending verticals such as high-yield savings. For example, revenue from personal loan verticals now makes up 55% percent of MoneyLion’s enterprise marketplace revenue, compared to 85% in the prior quarter.

During a question-and-answer session, company officials stressed that this doesn’t mean that loan revenue was declining, just that MoneyLion had diversified enough that these loans accounted for less revenue.

“Now what we’re trying to do is get more and more verticals,” the CEO said. “What do they really mean? It could be credit cards, it could be other types of loans, it could be the financial wellness bundle, they could be credit builders.”

On a macro level, he added, lenders need more certainty about the rate environments. For now, however, MoneyLion is seeing lenders pull back because of uncertainty about interest rates.

“The feedback that we’re getting from our lenders is that as soon as we see a modicum of stability in the rate forecast … we actually anticipate personal loans also to come back at some point in 2024,” Choubey said.

This environment has caused other financial firms to shift their priorities as well. As PYMNTS reported late last month, online lender LendingTree has shifted from just trying to provide a personal loan to consumers who search for a personal loan to suggesting other options available from the different financial industries in its orbit.

“We’re now shifting to more of a solution-based model where, if you’re looking for a personal loan, we’re going to try to get you a personal loan, but maybe a home equity loan is a better option,” Chief Operating Officer Scott Peyree said during an earnings call. “Maybe you can’t get a personal loan, but you can get a credit card; maybe you’re a debt relief candidate; if you own a car, maybe you get a cash-out refi on your car loan, etc.”