MoneyLion, the mobile bank that created America’s most powerful financial membership designed to help hardworking Americans save, invest and grow, today announced $160 million in funding — $60 million in previously unannounced financing and a $100 million Series C funding round.
The round was co-led by Edison Partners and Greenspring Associates and included strategic investment from Capital One, a diversified bank that offers a broad array of financial products and services to over 45 million consumers. The round also included investment from MetaBank and FinTech Collective. Upon completion of the Series C round, the company will have raised over $200 million in equity financing.
“We created MoneyLion with a focused goal of providing people with the most valued banking experience in the world,” said Dee Choubey, CEO and founder of MoneyLion. “In 2018, we helped our members avoid over $7.2 million in traditional banking fees, generated over $12 million in cashback rewards and helped 70% of our members increase their credit scores by 30 points. The strategic investment from these leading financial institutions validates our mission and approach and demonstrates their acknowledgment of a dynamic shift in consumer banking. It also reinforces consumer demand for fintech solutions that provide Americans with unprecedented access to the most powerful financial products and services in a single, integrated platform. More than just a challenger bank, MoneyLion is a membership destination that’s given its more than five million members a chance to once and for all take control of their financial futures.”
MoneyLion’s membership has helped millions of Americans achieve their financial goals through exclusive access to some of the most disruptive and powerful financial products on the market. By aggregating banking, investing, credit-building, rewards, loans, and financial wellness products and services into a single point of access, MoneyLion has created a financial destination that helps members easily organize their financial lives and empowers them to make better financial decisions.
“We believe that MoneyLion, with its financial membership model and holistic approach to providing an all-in-one financial solution for millions of Americans, has created the most complete mobile banking destination in the market,” said Hunter Somerville, General Partner at Greenspring Associates. “We’re proud to back what we see as the digital banking platform of the future.”
MoneyLion will use the funding to continue rapidly accelerating its customer growth within the US and drive further adoption of its powerful bank membership, which includes fee-free checking, 55,000+ free ATMs and zero-fee managed investment accounts that offer diversified portfolios, low-cost ETFs and hassle-free contributions. In 2019, MoneyLion’s bank membership has grown at an annualized rate of >1,000% with respect to both accounts and daily average transactions.
The company also plans to expand its product offering by introducing a series of new and innovative financial tools, including 0% APR daily cash advances available to members any day of the week to help with short-term cash flow issues, a high-yield cash account, and a stock trading platform that allows members to invest in individual companies about which they’re passionate. Together, these new tools will help broaden MoneyLion’s reach to those consumers looking for an all-in-one destination for all their financial activities and goals.
“MetaBank has carefully researched and partnered with some of the top consumer financial technology brands in the world, including the likes of PayPal and NetSpend,” said Jeremy Kuiper, Senior Vice President and Head of Meta Ventures. “When presented with the opportunity to invest in MoneyLion, we were overwhelmed by their unique approach to changing consumers’ relationships with their finances through membership, data and community engagement. We’re excited to continue our legacy of partnering with innovative companies that are powering the future of personal finance, like MoneyLion.”