MoneyLion debuts in trading after SPAC merger

0

Digital banking and investment platform MoneyLion began trading on the New York Stock Exchange on Thursday after closing its merger with specialist acquisition firm Fusion Acquisition Corp.

The combined company is renamed MoneyLion Inc. and is led by its existing management team, including MoneyLion co-founder and CEO Dee Choubey. When the PSPC deal was announced in February, the combined companies shared an expected valuation of $ 2.9 billion.

The shares were trading at $ 8.63, down 13.7% as of 4:15 p.m. ET.

MoneyLion, a New York-based fintech company founded in 2013, joins the ranks of other recently public fintech companies like Social Finance Inc., Robinhood Financial and Square’s Cash App. Companies are part of a growing list of fintechs aiming to be the preferred place for consumers to manage all aspects of their financial lives.

The IPO was the way forward for MoneyLion as fintech grows alongside underlying changes in American society, as more consumers become interested in financial planning, Choubey said in an interview. On top of that, there are more gig economy workers, who make up a large part of MoneyLion’s user base.

“Americans are breaking away from the 9 to 5 work week for much more concerted work, much more flexible work,” he said. “Thirty percent of MoneyLion members are workers in the odd-job economy. ”

Workers in the gig economy build income through multiple streams, but incumbent financial services institutions were not designed to take variable income and deliver financial products to this demographic, he said. . MoneyLion is seizing this niche market and capturing those assets.

“It’s our superpower,” he said. “We can take the variability of someone’s income and instantly our algorithm is able to tell that you are a very good customer to us. “

MoneyLion has been busy curating a wide range of financial products, from online and mobile banking to automated investing and personal financial management with its Financial Heartbeat tool.

MoneyLion announced in March its acquisition of Wealth Technologies Inc., a nascent start-up that adds robo-advisory services to a financial institution’s technology stack. For MoneyLion, the idea is to use the tool to bring the previously exclusive private banking experience and personalized advice to the general public, Choubey said.

FinTech has gathered 8.5 million users on the platform and is currently beta testing its cryptocurrency offering. The crypto market will allow users to buy, sell and hold cryptocurrencies and is expected to be available to all platform users on October 5, Choubey said. The decision to go into crypto was easy after seeing competitors like Cash App do the same, he said.

Fintech also polled its users, revealing that 77% said if the platform created access to instantly transfer dollars into crypto, they would use it.

For reprint and license requests for this article, click here


Source link

Leave A Reply

Your email address will not be published.