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As it prepares to go public, MoneyLion is growing quickly, reducing losses

  • Challenger bank MoneyLion grew its revenue by 32 percent, reaching $79.4 million for the full year of 2020, according to its latest earnings report.
  • The fintech is tapping into the cryptocurrency world through its partnership with digital asset platform ZeroHash.
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As it prepares to go public, MoneyLion is growing quickly, reducing losses

Challenger bank MoneyLion recently announced its earnings for 2020. The company reported a revenue increase of 32 percent, reaching $79.4 million, compared to $60.4 million in 2019.

This increase was fuelled largely by revenue generated through its loan originations and its 60 percent increase in membership growth, which now ranks at around 1.4 million users. This marks a significant jump from its customer base in 2019 which amounted to around 894,000 consumers. 

MoneyLion earns its revenue primarily through its loan business and its subscription offering through a combination of fees and interest charged to its consumers. In 2020 the mobile bank reported a total payment volume growth of 84 percent to $510 million while total originations grew by 242 percent to $410 million. In 2019 these were $277 million and $120 million respectively.

“The digital financial solutions landscape changed significantly in the past year, and I'm proud of our team's ability to capitalize on market opportunities, deliver strong financial results and generate consistent, high-user growth and engagement on our platform," said Dee Choubey, MoneyLion co-founder and CEO. 

The digital banking app reported a decrease in its net loss of $32.3 million, compared to $79.1 million in 2019. 

For the first quarter of 2021, MoneyLion expects to report greater accelerated growth in its adjusted revenue to approximately $31.5 million, up 118 percent compared to the first quarter of 2020. Adjusted revenue here is defined as total revenues, net plus amortization of loan origination costs less direct charge-offs and revenue derived from phased out products.

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"As our preliminary first quarter results demonstrate, this momentum has strengthened due to the advancement of our product offerings and capabilities to help more customers take control of their financial future. In light of these results, we are confident in our ability to meet our financial outlook for the full year 2021,” said Choubey. 

MoneyLion has indicated that it will be going public in the coming months through its SPAC merger with blank check firm Fusion Acquisition Corp. 

Earlier this month the fintech also announced that it will be venturing into crypto through its partnership with regulated digital asset provider ZeroHash. The fintech’s cryptocurrency feature will allow members to buy, sell and earn digital currencies. 

The offering will include a crypto rewards based program and spending roundups through debit card purchases. According to Choubey, MoneyLion members have not previously acquired crypto due to a foundational lack of knowledge in the digital asset class. 

"We want to empower people with the tools and education they are looking for to feel confident when they decide to enter this market,” said Choubey. “The MoneyLion crypto offering will provide members an intuitive way to own digital currencies within a seamless and secure environment and, through our strategic investment in Zero Hash, we're confident that we're advancing our mission to increase access to previously exclusive financial services." 

A growing number of fintechs have started offering crypto based rewards programs and services. In December of last year, Quontic Bank became the first bank to offer bitcoin rewards on credit card purchases. Crypto custodian Gemini recently announced its launch for a crypto credit card with Mastercard which offers consumers the ability to earn back 3 percent of bitcoin or other cryptocurrencies with every purchase. 

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