TransUnion and MoneyLion Team to Promote Consumer Finance Personalization
TransUnion teamed with financial services portal MoneyLion to boost personalization within consumer finance.
The integration is designed to make sure consumers get the most personalized and relevant financial offers, improving their experience with MoneyLion while also extending the reach of TransUnion’s credit solutions, according to a Tuesday (Sept. 17) press release.
“By integrating our comprehensive credit data with MoneyLion’s innovative digital acquisition platform, we can offer a more robust experience to consumers and our partners alike, ensuring informed decision-making and greater consumer satisfaction,” Jason Laky, executive vice president of financial services for TransUnion, said in the release.
Financial institutions working with MoneyLion will benefit from the collaboration via more efficient decision-making and segmentation capabilities using TransUnion’s comprehensive credit data, per the release. They will also be able to attract customers and present them with the most suitable products at the right moment in their financial journey.
“This partnership with TransUnion exemplifies MoneyLion’s commitment to creating a dynamic digital consumer finance ecosystem where consumers can seamlessly access the financial tools and insights they need, while also enabling financial institutions to engage with customers more effectively,” MoneyLion co-founder and CEO Dee Choubey said in the release.
The partnership comes as MoneyLion is pivoting its business model. In 2023, the company posted substantial losses as a neobank, only to announce its second straight profitable quarter in August as it shifted to its current state as a financial services portal.
As Choubey told PYMNTS, this growth is being driven by the middle-income, paycheck-to-paycheck consumer.
“They’re the firemen, the teachers, the cops, the gig economy workers,” Choubey said. “We are not as yet seeing a lot of job displacement in that segment. This is probably going to be the first white-collar recession, and that’s going to potentially impact existing credit card books. But our risk selection technology is good, and the demand from the essential workforce for our products is going up.”
Once a neobank, MoneyLion transitioned into essentially a consumer and business financial services portal and shopping mall.
Its essential customers are using the site to purchase buy now, pay later, income advances, earned wage access, secured card products and short-term installment loans.
“What’s not moving yet: mortgages,” PYMNTS wrote. “However, Choubey expects business to increase if the Fed cuts prime rates as expected in September.”
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