Personal finance management app MoneyLion, which pegs itself as financial services for the middle class, announced today that it has raised $42 million in Series B funding.
In a press release, MoneyLion said it will use the funding to “increase investment in technology and continue to expand its product line.”
With MoneyLion’s mobile app, users can connect their bank and credit card accounts to track their spending, get free credit monitoring and receive personalized advice based on their spending habits and credit profile—bundling the services of many personal finance management apps into one.
In November, the New York-based fintech launched MoneyLion Plus, a subscription service running consumers $29 a month. The service includes guided savings, where $50 or more from a consumer’s checking account is drawn on a regular basis and invested in a personalized diversified portfolio, and access to lines of credit with 5.99% APR or less—regardless of credit score.
For every day a customer logs into the app, MoneyLion also gives them back $1, rewarding them for healthy financial behavior.
Founded in 2013, MoneyLion has more than 1.5 million users, and said it has serviced over 250,000 loans to date. It also claims to be cash flow positive.
The round was led by Edison Partners, accompanied by returning investors FinTech Collective and GRUPO Sura, and new investors Greenspring Associates and Danhua Capital. With this round, MoneyLion has raised a total of $67 million in equity financing.
Today also, Wealthfront, the automated investing platform targeting millenials, raised $75 million. As pointed out by TechCrunch, Wealthfront is also relying on algorithms to increase efficiency and cut out middlemen—advisors.
Both of these developments come as venture capitalists are expected to cool on investments in consumer-facing financial technology in the new year, turning toward the opportunity to innovate the very structure of financial institutions themselves instead.
To whichever fintechs investment continues to flow in 2018, you can be sure automation will still be at play.
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Cadence is a fintech reporter and writer at Fintech Unltd, where she covers the changing landscape of financial technologies. Previously, Cadence interned at Psychology Today, Business Insider and the Wisconsin State Journal. Cadence is interested in how science and technology intersect with power and culture and is curious about the world we are creating for tomorrow, consciously or not. She graduated from the University of Wisconsin–Madison in 2017 with degrees in Journalism and Chinese. Send tips and story ideas to Cadence at [email protected] You can also follow her on Twitter @cadencebambenek.